Shares of Miranda Technologies Inc., a Montreal-based maker of hardware and software for broadcasters, surged more than 24 per cent on their first day of trading on the Toronto Stock Exchange.
The successful initial public offering suggests that after a five-year drought, investors are ready to dip back into the technology sector. The IPO is just the second major deal in the Canadian tech sector since the dot-com bubble burst in 2000.
Miranda shares, which have made their debut under the symbol "MT," were sold to the public at $11.25 a share and rose as high as $14.08 before pulling back a little to close the day at $13.98. About 5.4 million shares were traded yesterday.
The company bumped up the size of its IPO to $141-million from an initial estimate of $100-million.
Miranda is capitalizing on the trend of digitized content, selling products to help broadcasters, production companies and others dish out high-definition television or entertainment over Internet-based networks. Sales were up 31 per cent in the first nine months of the year, to $69.2-million from $52.9-million for the nine months ended Sept. 30, 2004.
The company's IPO was led by Genuity Capital Markets, its first major lead assignment since the investment firm was founded about a year ago. BMO Nesbitt Burns Inc., Desjardins Securities Inc., National Bank Financial Inc. and TD Securities Inc. are also involved.