- The IPO frenzy continues worldwide, and people are looking for Canadian IPOs.
- Canadian IPOs are worth waiting for in 2021 as potential investors often prefer pre-IPO shares for chances of quick returns.
- This year has been the year of IPOs and if the thought of getting hold of pre-IPO shares gets you excited, you must read this article.
A company plans an initial public offering (IPO) when it decides to become a publicly traded company from a private company. In an IPO, the private company offers its common shares to the public for the first time, and it allows raising money in gross proceeds.
From an investor’s point of view, IPOs get attention as they have the potential of earning returns on the pre-IPO stocks.
Generally, retail investors get an option to get hold of the pre-IPO shares of a company and the price of that stock increases when the common shares are available for everyone in a stock market. However, it is important to note that sometimes the stock opens at a lower price and investors may incur losses.
This year has been the year of IPOs and if the thought of getting hold of the pre-IPO shares gets you excited, here's a list of five highly anticipated IPOs of Canadian companies you could consider for your next investment:
The Waterloo-based company is a cloud-based network management and monitoring software. According to the company website, Auvik software monitors over 3.5 million devices and manages more than 400,000 network devices.
In July 2021, Auvik raised US$ 250 million in new funding, and it came exclusively from Great Hill Partners as it took a majority stake in the company. Established in 2011, Auvik saw significant growth during the COVID-19 pandemic as companies were required to manage the networks remotely.
Potential investors are waiting for the company's IPO as it is recognized among the fastest-growing companies in Canada and a winner in the Deloitte Technology Fast 50 and Fast 500 for two consecutive times.
Auvik Networks has reportedly raised US$ 283.3 million to date and could consider going public to raise money to expand.
Cymax Group Technologies Ltd.
It is one of the fastest-growing e-commerce retailers in Canada and is involved in selling furniture. Cymax Group has over 75,000 stock keeping units and its annual sales exceed US$ 100 million, as per the company website.
Based out of Burnaby, Cymbax was founded by Arash Fasihi in 2004 as a small website for audio-video furniture. It now sells all furniture for home and office and sells its products in the United States and Canada.
Cymax attracts customers as it allows them to save money by offering a bargain in every purchase and its drop-shipping model allows customers to buy directly from the manufacturer.
In October 2020, rumors had surfaced that the British Columbia-based online furniture retailer was looking to go public, but it seems that the plans never really sailed off. As the IPO frenzy continues this year, the company could opt for an IPO.
The online investment management services company focuses on making Canadians financially independent and its target audience is millennials. Wealthsimple was started in 2014 to offer financial services and it allows its customers to get in touch with financial advisors for investment portfolios, retirement, and tax planning among other services.
As it is a financial technology company, innovative robot-advisors of Wealthsimple saves the time of customers and invests their money automatically without taking assistance from a person.
According to Wealthsimple, it holds C$ 8.4 million worth of assets under management and more than 1.5 million people are using its services. The company has not announced initial public offering plans, but investors are hopeful that the company could take the IPO route.
The Canadian educational technology company uses rapidly evolving artificial technology to help students secure admissions abroad. The Waterloo-based company was established in 2015 and this year it was valued at around US$ 3.2 billion after a Series D funding round in which ApplyBoard raised US$ 300 million.
ApplyBoard uses AI to facilitate students and recruitment partners by connecting them. Users can search for desired programs and apply to more than 1,500 educational institutions globally.
The company's platform also allows institutions to reach diverse and qualified students, so it seems to have a scope of partnering up with more institutions in the future.
Countries are expected to ease border restrictions and as vaccinations are increasing worldwide, students could opt to leave Canada and go abroad for further studies. This could benefit ApplyBoard and the company may take the traditional IPO route to raise money and expand business operations.
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Located in Saskatchewan province, Vendasta provides end-to-end e-commerce solutions and delivers services and digital products to local businesses worldwide. In May 2021, the company had raised C$ 119.5 million in financing led by New York-based Lugard Road Capital.
The funding round was also co-led by Canadian Business Growth Fund and Nicola Wealth. According to the company website, it has served over five million local businesses and has more than 50,000 channel partners.
Vendasta has emerged as one of the leading technology companies in the world, and it employs more than 500 people. As the company is growing rapidly, it could go public to further expand its business operations.
Economies are rebounding from the negative impacts of the coronavirus pandemic and many companies are opting for an IPO this year as it allows them to raise money for several activities like expanding business operations, paying debts or indulging in mergers and acquisitions.
If you are an investor, exploring pre-IPO stocks could yield quick returns. However, it is important to research before making investments.