Nuvei Corp. has filed to go public in the United States, becoming the latest in a string of Canadian technology companies to dual-list south of the border after successful debuts on the Toronto Stock Exchange.
The acquisitive Montreal online-payments technology company said after markets closed Monday that it had launched a marketed offering of 1.5 million shares in the United States and Canada, and applied to list on the Nasdaq Global Select Market, under the same NVEI ticker it uses in Canada. Underwriters Goldman Sachs, Credit Suisse, J.P. Morgan, BMO Capital Markets and RBC Capital Markets are leading the offering. Nuvei closed Tuesday at $154.93, up 5.1 per cent, after the news and a positive day for technology stocks in general.
The offering comes just more than one year after Nuvei launched what was, for a few months, Canada’s largest initial public offering by a technology company on the TSX. (Telus International (Cda) surpassed it early this year). Nuvei raised US$735-million in gross proceeds at $26 a share in its TSX IPO in September, 2020, while shareholder Novacap Management Inc., the Montreal-area private equity firm, sold US$75-million of its shareholdings, for a total of US$805-million.
Nuvei follows Lightspeed POS Inc., which went public in the TSX in March, 2019, raising $276-million, then listed on the New York Stock Exchange in September, 2020, raising nearly US$400-million in its U.S. debut. Employee training software provider Docebo Inc., which made its debut on the TSX in October, 2019, with a $75-million offering, also followed suit by raising US$165.6-million in gross proceeds when it listed on Nasdaq 14 months later. Shopify Inc. went public simultaneously on the New York and Toronto Stock Exchanges in 2015. All four software companies have seen their shares soar in value since going public, with Shopify last year becoming Canada’s most valuable company.
Nuvei, led by billionaire CEO Phillip Fayer, provides payment software used by online gaming and other e-commerce providers. The 18-year-old company first said in August it would be pursuing a Nasdaq listing when it unveiled second-quarter results. Nuvei at the time said it generated revenues of US$178.2-million in the three months ended June 30, up 114 per cent year over year, and processed $21.9-billion in payments volumes, up 146 per cent. The company generated net income of US$38.9-million, or 26 US cents per share, up from US$14-million and 15 US cents a year earlier.
The company closed its most recent deal in a string of acquisitions one month ago, when it said it would buy Latin American payments-software provider Paymentez LLC, a leading payment-solution provider in Latin America, for an undisclosed sum.
Nuvei also last week announced several changes to its senior leadership team, promoting Max Attias to group chief technology officer from chief operating officer, replacing Keith Birdsong, who is retiring. The company also said it had hired Mastercard’s senior vice-president and global head of digital marketing Guillaume Conteville as chief marketing officer, while new chief people officer Nikki Zinman joined after leaving education publishing giant Pearson as senior vice-president of human resources.
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