Investing in the IPO revival

Amid negative sentiment, many small-caps trade well below fair value, says Fiera's Michael Chan.

Sonita Horvitch 18 November, 2015 | 6:00PM

Michael Chan, vice-president and senior portfolio manager at Fiera Capital, says that the initial public offering (IPO) market for Canadian small-cap companies has been active this year as evidenced by the listing of a range of attractive small-cap stocks.

"Both private-equity firms and entrepreneurs have been successfully taking some fairly advanced smaller companies public and we, in turn, have taken advantage of this," says Chan.

"It is an excellent time to invest in this asset class in general," the veteran small-cap manager says. "Our analysis shows that there is good upside in well-chosen small-cap stocks, many of which are trading at a considerable discount to our assessment of their fair market value."

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Boyd Group Income Fund212.96 CAD0.55
Linamar Corp37.70 CAD-0.82
Savaria Corp12.06 CAD-2.39
Spin Master Corp29.88 CAD-0.86
Tricon Capital Group Inc11.65 CAD-1.27

About Author

Sonita Horvitch

Sonita Horvitch