It was back to bricks and mortar for nervous investors in the last months of 2001, according to a new survey of Canadian IPOs by PricewaterhouseCoopers.

The study of Initial Public Offering activity in Canada last year shows that while it was a difficult year, activity during the second half helped halt the trend towards low activity levels.

A total of 74 IPOs were brought to market in 2001.

This compares to 1992, when only 64 were successfully completed.

“While the market was in deep hibernation in 2001, it was not dead,” said Eric Slavens, head of the IPO Services group at PricewaterhouseCoopers.

“Investors demonstrated renewed interest late in the year for offerings built on a foundation of bricks and mortar.”

Substantial offerings in November and December included Shoppers Drug Mart for $540 million, Clean Power Income Fund for $187.9 million and Davis & Henderson Income Fund at $172.4 million. Slavens says this indicates investors were ready to support an offering from established companies with solid earnings records.

In addition, the survey shows there was renewed interest in real estate, with three offerings totalling $505 million (Retirement REIT at $200 million, IPC US Income Commercial REIT for $155 million, and O&Y Real Estate Investment at $150 million). There was no real estate IPO activity in 2000.

The survey also shows the 74 successful IPOs on Canada’s major national stock exchanges in 2001 were worth a total of about $5.9 billion.

Slavens also said lower IPO valuations in 2001 represented value for new shareholders. “Valuations in 2001 declined from the stratospheric value placed on some dot-com first offerings in the past couple of years,” he said.

“The effect of lower valuations can be beneficial and often provides investors with some real value. That’s a good thing for the long-term stability and growth of the public markets.”

He added companies considering an Initial Public Offering would be well advised to be fully prepared in order to take advantage of a rebound.

PricewaterhouseCoopers says its objective in publishing IPO surveys is to provide information to the corporate sector, investors, the media and others that will help them put market activity into better perspective.