Canada IPO Bankers Hail ‘Revolutionary’ New Fundraising Rule

Investment bankers are applauding steps taken by Canada’s securities regulators to make it easier to do initial public offerings, and to raise money afterwards.

At a time when Canadian stock offerings are mired in a multi-year decline, the country’s regional securities regulators have introduced new rules that investment bankers and securities lawyers say could spur IPOs in an otherwise anemic market.

The rules allow firms considering an IPO to file prospectuses with only two years of audited financial statements rather than three, and also to use those same prospectuses to raise more capital for an additional 12 months. ...