TMX unit Shorcan Brokers Limited to operate TSX Private Markets, will help local start-ups raise money and go public.
TMX GROUP LIMITED (TSE:X, Mkt cap 2.89B, P/E 23.33, Div/yield -/3.00, EPS 2.29) Canada’s largest public stock market operator, will start providing capital raising and trading services in the private market to capitalize on its strong growth potential, the company has revealed.
The operator will launch a new business, called TSX Private Markets, that will help local start-ups raise money and eventually go public. The business will target the private “exempt” market and will specialize in voice-brokered services to help companies gain access to capital in the early stages of their development.
The service will be operated by TMX’s unit Shorcan Brokers Limited, which is a registered Exempt Market Dealer. The business is expected to start operating in the third quarter of the year, pending final regulatory clearance.
TMX stated that the launch of the new service would provide registered dealers, accredited investors and other exempt investors with “access to unique investing opportunities.”
Kevan Cowan, president of TSX Markets and group head of equities at the company, said that the new business will help Canadian start-ups find the money they need to get their business off the ground, something they have long found difficult to achieve. In an interview with CP24, he said that small and medium-sized firms play a critical role in the economy and facilitating their growth and access to funding is key to keep them thriving.
TMX’s announcement came a few days after the Ontario Securities Commission proposed new rules that would allow start-ups and young companies to raise up to $1.5 million a year from individual investors through registered crowd-funding web portals.
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