A plain-English guide for founders weighing a public listing, from the Toronto team at Launch Capital. Compare the routes, the four exchanges and what it takes to get listed.
There is no single path. The right one depends on your stage, how much you need to raise and how much time and cost you can absorb.
You file a prospectus with securities regulators and sell new shares to the public through a sponsoring dealer. It is the most visible route and the most work, and it suits companies with real revenue or a clear path to it.
Your private company combines with an existing listed shell and takes over its listing. It can be faster than an IPO, but the combined company still has to meet the exchange's listing standards.
A CPC is a listed shell on the TSX Venture Exchange with no operations, formed to find and acquire a business in a Qualifying Transaction. It is a well-known route for early-stage Canadian companies.
A listed vehicle raises cash first and then merges with an operating company. Canada has its own SPAC rules, so US-style assumptions do not carry over.
Canadian companies typically choose among four exchanges. Each has different listing standards, costs and investor profiles, so match the exchange to your stage.
The senior exchange, for established companies that meet higher financial and operating thresholds.
The junior exchange for emerging companies. It uses tiers, with requirements that scale with the size and maturity of the business.
An alternative exchange with a disclosure-based approach, popular with early-stage companies.
A newer option for growth companies, with its own listing criteria and a focus on technology and innovation names.
Check each exchange's current published requirements before you plan. Thresholds and fees change.
Going public is a team effort. Expect to engage these specialists well before you file anything.
Structures the transaction, prepares the prospectus or filing statement and keeps you inside securities law.
Exchanges and regulators expect audited financial statements prepared to the required standard, often for several years.
For many listings, an investment dealer sponsors the company and runs the offering to investors.
Public companies communicate with the market continuously. Plan for disclosure, press releases and shareholder contact from day one.
Exchanges look closely at directors and officers, including experience, independence and track record.
Maintains your share register and handles share issuances and transfers once you are listed.
A step-by-step guide to private fundraising, a useful comparison before you commit to a public route.
The documents and answers any investor, public or private, will expect.
Know what your company is worth before you set a price for the market.
A reverse takeover or a Capital Pool Company transaction is often quicker than a full IPO, but speed depends on your readiness, audited financials and regulatory review. None of the routes is instant.
Not always. Junior exchanges accept earlier-stage companies, while the TSX expects more established financial performance. Check the current standards for the tier you are targeting.
Costs include legal, audit, sponsor or dealer fees, exchange listing fees and ongoing compliance. They vary widely by route and exchange, so get quotes from your advisors before you decide.
Many companies do. A private round can build traction, shape the cap table and make a later listing easier. It depends on your timeline and how much you need.
We are a Toronto venture capital firm and family office focused on technology and services businesses. If you run a Canadian technology or services business and are weighing a listing, contact us.
This page is general information, not legal, tax or investment advice. Listing requirements and securities rules change, so confirm current rules with a qualified securities lawyer and the exchange before acting. Sources: TSX Venture Exchange listing process, Baker McKenzie TSXV requirements and WeirFoulds going public guide.
Launch Capital is a Toronto venture capital firm and family office focused on technology and services businesses. If you run a Canadian technology or services business and are weighing a public listing, contact us.