Major Drilling Executives Say More Local Companies Should Consider Going Public
There are relatively few publicly held companies based in Atlantic Canada. In recent years, the region’s high-flying technology companies have typically grown to a point and then sold to a national or international firm. The region is also known for its intergenerational family-owned businesses. Should more firms look at listing on the public stock markets such as the Toronto Stock Exchange (TSX)?
On the week's episode of the "Insights" podcast, Denis Larocque, President and CEO of Major Drilling and Andrew McLaughlin, the company’s VP of Legal Affairs and General Counsel, weigh in on the pros and cons of being a publicly-traded company. Moncton-based Major Drilling, one of the province’s few publicly traded firms, has used its ability to raise capital to become one of the world's largest drilling services companies.
McLaughlin has written a persuasive report outlining the benefits and believes more publicly held companies would be good for the economy, which Huddle will be publishing later this week. He says New Brunswick has a lot of large family-owned businesses and a strong ecosystem of smaller businesses.
"What seems to be missing is that middle layer that can expand into titan status. I'm talking about companies with $200-million in revenue that can grow up to the $1-billion mark," McLaughlin tells "Insights" co-host David Campbell.
"It's this layer of companies that are the drivers of wealth creation and economic dynamism in other provinces. It's this realm where public companies can play a particularly prominent role."