Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

Legal software provider Dye & Durham Corp. has increased the size of its planned initial public offering by 50 per cent amid strong demand from investors keen to buy into the soaring Canadian technology sector.

The acquisitive Toronto company now plans to sell $150-million of stock on the Toronto Stock Exchange, offering between 20 million and 21.43 million shares at between $7 and $7.50 apiece, according to a regulatory filing. Of the gross proceeds raised, $127.5-million will go to the company. Investment vehicles related to CEO Matthew Proud and his brother, former chairman and outgoing director Tyler Proud, are also selling $10-million worth of stock held by personal holding companies in the offering. Another long-time shareholder, Wahi Investments, is selling $2.5-million worth of stock.

The total has grown from the original plan, filed in late June with regulators, for D&D to sell $100-million in the IPO, with $90-million going to the company and $10-million going to an investment entity affiliated with Tyler Proud, Seastone Invest Ltd.

Story continues below advertisement

It’s been a busy week for the Proud brothers. They are also part of a group trying to buy Torstar Corp., along with investment banker Neil Selfe and former Ontario finance minister Greg Sorbara. Their 72-cent-per-share bid for the publisher of the Toronto Star is higher than the 63-cent bid from Toronto business leaders Jordan Bitove and Paul Rivett that the company agreed to in May and “may reasonably be expected to constitute or lead to a ‘superior proposal,‘” Torstar said Thursday. The company’s board and a trust that represents the five families who control Torstar are now weighing the two offers. It is believed Tyler Proud and Mr. Selfe are leading the Torstar bid, as Matthew Proud has been focused on the D&D IPO.

Sources familiar with the D&D IPO, led by underwriters Canaccord Genuity, Scotia Capital Inc., BMO Nesbitt Burns and Infor Financial Group Inc. (where Mr. Selfe is CEO), say the offering was upsized after investors placed orders for more than 11 times the available stock, with much higher demand from institutional investors than other recent Canadian tech IPOs. The sources are not being identified by The Globe and Mail as they are not authorized to speak publicly on the matter. The underwriters have the option to buy another three million shares at the offer price.

D&D had intended to go public in the fall of 2018 but bailed due to choppy market conditions. Investors were also cool to the fact that more than half of the $125-million in proceeds would have gone to existing shareholders, mainly the Proud brothers. (Their share in the new IPO is 13 per cent.)

The company tried to address investor concerns as it prepared to retest the markets. Tyler Proud gave up the chairman role to lead director Brian Derksen, a former deputy CEO of Deloitte LLP. D&D also negotiated a $200-million credit agreement, using $50-million of the proceeds to pay a dividend to shareholders. It made three acquisitions in 2019 for $60-million.

D&D had eyed a $150-million IPO for early spring before the pandemic hit. That prompted the company to issue layoffs and temporarily cut employee salaries by 20 per cent. But with a strong rebound among technology stocks – Canadian-listed Shopify Inc., Kinaxis, Enghouse Systems Ltd., Real Matters Inc. and Docebo Inc. recently hit record highs – and steady performance by D&D, the market looked favourable for a renewed IPO. In March, D&D hired Jae Cornelssen, a former mergers and acquisitions adviser with KPMG Corporate Finance, as chief financial officer.

The company said in its prospectus that it earned pro-forma revenue of $60-million in the nine months ended March 31, up from $38.1-million in the same period last year, and posted adjusted operating earnings of $31.4-million and a net loss of $7.4-million. It has 144 full-time employees and is targeting revenue of about $75-million for the year ending June 30, with adjusted operating earnings of about $40-million.

It plans to pay an as-yet unspecified dividend and will use most of the IPO proceeds to repay debt.

Story continues below advertisement

Matthew Proud declined to comment on the offering Friday.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies