Saskatoon-based Vendasta Technologies Inc. has set a target price of $14 to $16 per share for its planned initial public offering on the Toronto Stock Exchange.
Vendasta, which sells digital tools such as marketing automation, customer relationship management and billing software to companies that serve small businesses, confirmed a Globe and Mail story last week by disclosing it is hoping to raise $100-million in the offering, which is being led by CIBC World Markets, National Bank Financial and TD Securities. Other underwriters on the deal are Bank of Montreal, Canaccord Genuity, Desjardins and Paradigm Capital.
Vendasta is the first to file a prospectus of the trio of software companies advancing toward IPOs profiled by The Globe and Mail this month. It is also the latest of a slew of Canadian tech companies to pursue public listings since valuations of software companies soared last year during the pandemic.
According to a revised prospectus filed Monday, Vendasta plans to sell between 6.25 million and 7.14 million shares at its target range to raise $100-milliion. If the company can hit targets identified in the document, it would go public with a market capitalization in excess of $700-million.
Vendasta’s top shareholders are Vancouver venture capital firm Vanedge Group, with a 31 per cent stake prior to the IPO, and Business Development Bank of Canada’s venture-capital group, with 29 per cent.
According to its prospectus, Vendasta earned $42.6-million in revenue last year, rising 23 per cent in each of the previous two years. It has 43,000 registered “channel partner” customers, 2,681 of whom are paying. It lost $14.8-million in 2020, compared to a $9.1-million loss in 2019.
Vendasta’s public filing is expected to be followed in short order by cybersecurity software maker Magnet Forensics Inc. of Waterloo, Ont.; and Vancouver-based Thinkific Inc., a provider of software for businesses to sell online courses – both of which have confidentially filed documents with regulators to go public. Several other Canadian technology companies have also tested public markets in recent months, including Winnipeg’s Farmers Edge Inc., an agriculture technology provider that completed its IPO earlier this month, and Montreal telemedicine company Dialogue Health Technologies, which filed to go public last week.
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