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Kinaxis is a “software as a service” cloud computing play.

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Kinaxis Inc. is forging ahead with its initial public offering, looking to raise as much as $124-million in its first stock sale to the public even amid a cooler environment for technology stocks.

Kinaxis is seeking to sell about 7.7 million shares at $14 to $16, a person familiar with the sale said, citing marketing documents. That pricing values the company at about $290-million, making it a significantly sized entrant on the Toronto Stock Exchange's tech roster.

About two thirds of the stock will come from the company, and about a third from venture capital funds that backed Kinaxis. The funds that are selling some of their stakes are HarbourVest and TechnoCap, but both will remain significant shareholders.

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In choosing to list on the TSX, the company is taking advantage of a strong appetite from Canadian portfolio managers for technology stocks. In addition, the IPO climate has been welcoming of late, with many deals oversubscribed. Kinaxis is in the especially-hot cloud computing area of "software as a service." Companies in that business generate revenue from subscriptions, a model that investors have gravitated towards.

The company's software helps users manage their supply chains, a market that, according to Kinaxis' marketing documents, is growing at about 20 per cent per year.

Kinaxis's revenue jumped from $46.7-million in 2012 to $60.8-million last year. The company posted $14.8-million in adjusted ebitda (earnings before interest, taxes, depreciation and amortization) last year, up from $9.8-million the year prior.

BMO Nesbitt Burns and Canaccord Genuity are leading the offering. It's a bit of a winning streak for Canaccord, which also had lead roles on two hot IPOs earlier this year, for Lumepulse and Callidus Capital.

The final pricing is expected in the first week of June.

Editor's Note: The Kinaxis 2012 revenue figure has been corrected in the online version of this story.

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