Public Listing: The Weak Link in Quebec’s Corporate Finance Ecosystem


Public Listing: The weak link in Québec’s corporate finance ecosystem.

A working group composed of approximatly  thirty experts and corporate finance professionals has studied this question and proposed recommendations to rebuild an echosystem more favorable to initial public offering in Québec. Review of the current situation shows that the public finance echosystem has substancially and gradually weakened. Within this context, the working group has decided to propose recommendations so that quick and concerted actions can be taken to revive this echosystem.

Québec Bourse acknowledges the recommendations contained in the report and welcomes the work of the working group. Québec Bourse intends to contribute to this initiative leading to the mobilization of interested parties and undertakes to work, within its areas of competences, to the implementation of the proposed action plan. 

The group has developped 20 recommendations, the ten principal ones are pesented below under three themes:

Enhance the visibility of public SMEs

  • Create a website dedicated to listed Québec companies together with a sponsorship network (recommendation 11)
  • Invite institutional investors to introduce a commission system as an incentive to public SME analysts based in Québec (recommendation 4)
  • Adopt tax measures to encourage the hiring of analysts based in Québec and specializing in the public SME market (recommendation 3) 

Drive demand and liquidity through investor incentives

  • Introduced a new simplified plan for public SMEs similar to the stock savings plan and invite the tax-advantaged funds to support them (recommendation 10)
  • Defer capital gains if the gain is reinvested in a Québec public SME (recommendation 14)

Increase the supply of capital for enterprises and simplify governance for them.

  •  Have TMX Group and other market participants set a 20% target of listings coming from Québec (recommendation 1)
  • Amend the Taxation Act so that a company and its shareholders retain their tax advantages once the company goes public(for instance, transfer and R&D Tax credits (recommendation 15)
  • Provide financial assistance for listing (recommendation 16)
  • Under the leadership of the Autorité des marchés financiers, simplify and relax the regulatory framework applicable to public SMEs (recommendation 18)
  • Simplify the accounting requirements for public SMEs (recommendation 20) 

For the full report, please visit:

 

 http://cpaquebec.ca/~/media/docs/public-medias/salle-presse/memoires/rapport-inscription-en-bourse_en.pdf