TORONTO (miningweekly.com) – The market momentum that started for initial public offerings (IPOs) in the last half of 2013 came to an abrupt halt in the first quarter of 2014, when the collapse of the market for new mining issues combined with an absence of activity on the TSX, created the worst quarterly result in five years, a survey of Canadian equity markets by professional services firm PwC has revealed.

The only sign of life for the IPO market during the period were two new issues worth $3.8-million on the TSX-V.

In contrast, there were four new issues with a value of $422-million on all Canadian exchanges during the first quarter of 2013.

Before the first quarter of this year, the lowest quarterly tally for proceeds from new issues was $2.5-million, reported in the first quarter of 2009.

It was the fourth time since 2008 that the quarterly PwC survey reported no new issues on the TSX. There was no activity on the TSX in the third quarter of 2008, the first quarter of 2009 and the first quarter of 2012.

With the pipeline of new issues virtually empty, prospects for a quick turnaround do not look encouraging, PwC national IPO services leader Dean Braunsteiner said.

"This time last year, REITs [real estate investment trusts] were driving the market. But concerns over interest rates have sidelined that market for now. With a damper on commodity prices and a big question mark over China, the extractive industries aren't in a position to pick up the slack.

“The tech sector in the US is certainly active, and in a few months we might see a similar spark in Canada,” Braunsteiner said.

However, the lull in the market could have one positive result, he argued.

"This is the time when companies thinking about an IPO are getting their houses in order. Companies with good track records will do better in a market where investors favour security and returns. This will be their time to shine,” he said.

PwC has conducted its survey of the IPO market in Canada for more than ten years. The firm noted that for the purposes of the survey, investment vehicles such as structured products were not considered IPOs because they did not represent new equity raised for operating companies.