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Post-IPO stock performance dismal so far in 2011

TMX Broadcast Centre manager Kris Backus walks in front of the centre's display board in Toronto on Monday May 16, 2011. The homegrown group making a $3.6-billion proposal for TMX Group (TSX:X) says its Ðtruly Canadian" bid wouldn't mean job cuts or a management shakeup and the operator of the Toronto Stock Exchange would remain publicly traded.

Frank Gunn/Frank Gunn/The Canadian Press

Forget about LinkedIn. It's been a rough year for a bunch of Canadian companies who recently opted to go public, which is something to keep in mind now that firms like Hudson's Bay Co. are looking to do the same.

When the deals were marketed, the markets were rising and commodities were the hot topic. But after a few months of trading, the hype around a good chunk of these names has dissipated and their stocks have suffered.

Condor Petroleum , which is developing oil and gas assets in Kazakhstan, is down 19 per cent since it started trading in early April. Royal Nickel , which started trading late in 2010, is down 24 per cent.

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Outside the resource space, hockey equipment maker Bauer Performance Sports Ltd. is down 16 per cent since it went public in March, and GT Canada Medical Properties Inc. is down 33 per cent.

To compare, year-to-date the S&P/TSX composite index is practically flat, down about 1 per cent. However, there have been some wild swings in that time, and some names started trading during the peaks.

However, the weak performances don't apply to every deal, particularly for those that started trading just before the new year. For instance, Pretium Resources Inc. is up a whopping 55 per cent since it started trading late December. And Potash explorer Karnalyte Resources Inc. is up 40 per cent since it started trading around the same time.

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About the Author
Reporter and Streetwise columnist

Tim Kiladze is a business reporter with The Globe and Mail. Before crossing over to journalism, he worked in equity capital markets at National Bank Financial and in fixed-income sales and trading at RBC Dominion Securities. Tim graduated from Columbia University's Graduate School of Journalism and also earned a Bachelor in Commerce in finance from McGill University. More

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