The number and value of IPOs on Canadian stock exchanges fell sharply in the third quarter compared with a year ago as investors worried about the sovereign debt crisis in Europe and the strength of the U.S. economic recovery, according to a report by PwC.

The international consultancy said in a report that there were just were seven initial public offerings with a total value of $271 million on Canadian stock exchanges in the quarter, including just one on the Toronto Stock Exchange worth $212 million.

That compared with 20 new offerings with a total value of $537 million a year ago when there were four on the Toronto Stock Exchange worth a total of $475 million.

Marked reduction

In the first three quarters of this year, there were 39 initial public offerings on Canadian stock exchanges with a total value of $441 million, including three valued at $397 million on the Toronto Stock Exchange.

That compared with 54 new equity issues with a value of $1.9 billion, including 14 on the Toronto Stock Exchange for $1.7 billion, in the first three quarters of 2011.

Dean Braunsteiner, PwC national IPO services leader, said concerns about Europe and the U.S. economic recovery have weighed on the market.

"There are some very significant IPOs in the pipeline that could revive the total IPO market and turn around the year, but it will require the resolution of some thorny issues beyond our borders," Braunsteiner said.