Experts have predicted this before and have been slightly embarrassed when their annual IPO forecasts don’t live up to the fashionable predictions investors are looking for out of the technology industry.
So, what’s different about the Canadian IPO market this year? Timing and politics, maturity and Trump.
And what a difference a year makes.
There are a number of public offerings being trotted out for investors to consider. It’s like a highly-anticipated recruitment year for the Red Wings and the fans are psyched this season.
According to the Financial Post, “the S&P/TSX composite index is coming off an impressive 17.5 per cent gain in 2016.”
After toeing the line for 18 months, however, Canadian tech companies like Real Matters Inc., Vision Critical Communications Inc., Hootsuite Media Inc., D2L Inc., and PointClickCare Corp. could all go public this year.
Real Matters, Inc., parent company of Real Matters, a network management services provider well known within the mortgage lending and services sectors, filed a preliminary prospectus with the securities regulatory authorities on April 11th across Canada for initial and secondary IPOs. According to Business Wire, Real Matters is expected to have initial and secondary rounds of IPOs of common shares, but the price per common share has not yet been determined.
Vision Critical Communications, Inc. has had a bit of a shake up in recent months, but is still poised for their public offering. Andrew Reid, who founded the Canadian marketing technology firm more than 10 years ago, left in November to head his own startup.
Then in February this year, W Capital Partners and Georgian Partners bought $76 million worth of stock from the existing investors, including ex-chief executive Angus Reid, Andrew’s father. The elder Reid received $44 million for his shares and gave up two board seats to W Capital. Georgian has been an investor since 2014.
The company is a cloud-based customer intelligence platform that gives companies a venue to communicate securely with customers.
No date is known as of yet in terms of an IPO prospectus.
D2L, Inc. has held off with an IPO for the last two years. They were highly anticipated to do so this year under the favorable market conditions, so investors are eagerly anticipating an announcement from the educational tech firm known for its Brightspace learning management system.
Hootsuite Media, Inc., the Canadian social media manager, did well in 2016. Investors and tech industry observers agree the company has value, though there is debate about what their valuation should be for an initial IPO.
With outside investment around $250 million in the company, a possible $1 billion valuation could be seen in the firm.
PointClickCare Corp. just raised $85 million at the beginning of the year, with 20 cloud-based EHR platform and other software solutions to advance senior care 16 revenues exceeding $160 million, which represents a 28 percent year-over-year growth.
The company, which is a cloud-based medical service platform that also designs software solutions to advance senior care, said in a statement in February it would issue an IPO “only when the market conditions offer the most favorable opportunity for our business, our customers and our investors.”