Skip to main content

Dax Dasilva, Lightspeed POS Inc. CEO, says the Montreal software company’s public offering on the New York Stock Exchange is aimed at raising its awareness in the U.S., where it does most of its business.

“It was important for us to list here and have that profile-raising moment here,” Mr. Dasilva said in an interview Friday after ringing the opening bell on the NYSE, adding that he hoped U.S. research analysts would start covering the company as well. “It’s a big milestone for the company. It’s something we always thought would be in our future.”

Lightspeed stock began trading in the U.S. Friday after the company, which provides internet-based point-of-sale and payments products for retail, hospitality and golf companies, sold 10 million subordinate shares for gross proceeds of US$30.50 apiece. That is a 4-per-cent discount to the stock’s closing price Thursday. Its largest shareholder, the Caisse de dépôt et placement du Québec, also sold 1.65 million of its 25.9 million subordinate shares in the offering for gross proceeds of US$50.3-million.

Story continues below advertisement

Lightspeed stock closed on the NYSE at US$30.25, and was off 4.4 per cent on the  TSX, on a down day for tech stocks overall.

Mr. Dasilva had long hoped to list in the U.S., after taking his company public on the Toronto Stock Exchange in March, 2019. Lightspeed could have done so as early as this past March, but with the economy shutting down because of the pandemic, it waited until posting two further quarterly financial results.

“I think we showed in our last quarter the business is performing and that our customers are very resilient” and they’ve been adding more Lightspeed features, he said. Some businesses have “churned,” or dropped the service, “but we’ve been showing impressive new adds. That impressed investors. We’ve been educating the market on why we’re a really good solution now for merchants embracing online commerce." The company’s system was used in 77,000 customer locations as of June 30.

Mr. Dasilva, who controls the company through his ownership of multiple voting shares, said the offering had targeted U.S., European and Canadian investors, with a focus on selling stock to “U.S. long-oriented investors,” or institutions looking to buy and hold.

He said most of the oversubscribed offering, led by Morgan Stanley, Barclays and Bank of Montreal plus another eight U.S. and Canadian banks, was placed with U.S. investors. The underwriters have the right to buy another 1.75 million additional subordinate shares from the company and five senior executives, including Mr. Dasilva, in the 30 days after the offering closes.

Lightspeed will use the proceeds to step up efforts to sell to customers looking to upgrade from older, fixed point-of-sale systems to Lightspeed’s internet-based offering. It will also build more features to accommodate new business realities, such as recently added curbside pickup, delivery and contactless pickup options for customers and continue acquiring other companies, he said.

In listing south of the border, Lightspeed joins several other Canadian technology companies that have dual Canadian/U.S. listings, including Shopify Inc., Open Text Corp., Celestica Inc., CGI Inc. and Ceridian HCM Holding Inc.

Story continues below advertisement

Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. Sign up today.

Report an error Editorial code of conduct
Tickers mentioned in this story
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