Toronto Stock Exchange (TSX) Listing Requirements

Toronto Stock Exchange (TSX)

The Toronto Stock Exchange (TSX) is Canada’s principal senior equity market. It is generally suited to established companies that are ready for the financial, public-distribution, governance and ongoing reporting requirements of a senior stock exchange.

For companies considering going public in Canada, the TSX may be the appropriate destination from the outset or a later-stage objective after building on a venture market.

TSX Listing Requirements

TSX listing requirements vary by industry and by whether an issuer qualifies as exempt or non-exempt under the Exchange’s standards. The applicable criteria can include financial performance or resources, working capital, management and board experience, public distribution, market value and industry-specific requirements.

There is no single financial test that applies to every TSX applicant. Mining, oil and gas, technology, life sciences and industrial companies are assessed under different standards, so the company’s actual business and stage of development need to be reviewed against the relevant TSX category.

Ways to List on the TSX

Companies can reach the TSX through several routes, including an Initial Public Offering (IPO), a Reverse Takeover (RTO), a direct listing in appropriate circumstances, or a graduation from the TSX Venture Exchange.

The right route depends on whether the company is already public, its financing requirements, shareholder distribution and the transaction structure available to it.

Graduating from the TSXV to the TSX

For a successful TSXV issuer that grows to meet the TSX’s standards, graduation can provide a streamlined path to the senior market. The company still needs to satisfy the applicable TSX listing requirements, but the process differs from a completely new public-company listing.

TSX Listing Process

At a high level, a company submits its listing application and supporting disclosure for TSX review. The Exchange assesses the company against the applicable listing standards and may request additional information before issuing conditional approval.

Depending on the type of application, the TSX may require sponsorship. Sponsorship is generally not required for an IPO or a qualifying TSXV graduation, but the requirement should be assessed for the specific transaction.

Is the TSX Right for Your Company?

A TSX listing can be appropriate for companies that have reached the scale and public-company readiness expected of a senior exchange. The decision should be considered together with financing needs, investor audience, governance requirements and longer-term capital-markets objectives.

GoPublicInCanada.com can review the company’s current position, compare the TSX with the TSXV, CSE and CBOE Canada, and help coordinate the appropriate path. Complete the contact form on this page to discuss your options.