LED lighting maker LMPG Inc., has decided to halt its recent plans to go public on the Toronto Stock Exchange, citing “non-optimal” market conditions.
Earlier this month, the company, a subsidiary of Power Corp. of Canada formerly known as Lumenpulse Group, filed to go public on the Toronto Stock Exchange with a goal of raising $300-million.
But now, LMPG has become the latest company to pull the plug on its latest growth plans, saying the company will “revisit” its initial public offering strategy when market conditions are less volatile.
LMPG is among a number of Canadian companies who pursued public listings in one of the busiest periods for IPOs in years. But the market window has been opening and closing repeatedly over the past six months, making optimal price ranges difficult to obtain.
Several Canadian IPOs have struggled this year. MDA Ltd., Boat Rocker Media Inc. and ABC Technologies Holdings all had to cut their offering sizes and prices to complete their IPOs. Last month, Saskatoon’s Vendasta Technologies Inc. also had to halt its offering on the Toronto Stock Exchange, instead raising $119.5-million in a private financing led by New York’s Lugard Road Capital.
At the same time, LMPG parent Power Corp. has been vocal about its plans to divest its non-financial services businesses over the next two to three years including LMGP; electric-vehicle maker Lion Electric Co.; Peak Achievement Athletics Inc., the maker of Bauer and Easton sporting goods; and GP Strategies Corp., a workplace technical training company.
LMPG sells indoor and outdoor high-performance and energy-efficient LED lighting equipment used on some of Montreal’s biggest landmarks, including the Olympic Stadium and Notre-Dame Basilica.
This was the company’s second run at being a public company. In 2014, the company raised $115-million at $16 a share but later privatized in 2017. The company was hoping to accelerate its acquisition strategy by launching another IPO, and “seize growth opportunities” in its sector post-pandemic.
“We are well positioned to seize on the secular industry tailwinds that will continue to drive growth in our business,’ said LMPG founder and CEO François-Xavier Souvay, said in a statement. “Our ongoing investments in new products and technologies are key to capturing growing opportunities in smart cities, buildings and infrastructure projects.”
With a report from Tim Kiladze
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