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Summary
- Canadian tech firm Magnet Forensics Inc (TSX:MAGT) debuted on the Toronto Stock Exchange (TSX) on Wednesday, April 28.
- A day before its TSX debut, the cybersecurity startup expanded the size of its IPO from initially announced C$ 90 million to C$ 100 million.
- The company is also yet to close its IPO, which it formally plans to do on Monday, May 3.
After becoming the first Waterloo Company to launch an initial public offering (IPO) in 15 years, Canadian tech firm Magnet Forensics Inc (TSX:MAGT) debuted on the Toronto Stock Exchange (TSX) on Wednesday, April 28.
A day before its TSX debut, the cybersecurity startup expanded the size of its IPO from initially announced C$ 90 million to C$ 100 million. It offering price was also increase to C$ 17 apiece from the price range of C$ 14-16.
On its first day on the stock exchange Magnet Forensics stock shot up by about 35 per cent from its IPO price to close at C$ 22.9.
The company is also yet to close its IPO, which it formally plans to do on Monday, May 3.
Magnet Forensics IPO Details
In its Post-Receipt Pricing (PREP) prospectus filed with the securities regulatory, Magnet Forensics said that it has offered about 5.89 million shares at a price of C$ 17 apiece. This brought its estimated gross proceeds to about C$ 100.13 million.
Its IPO’s underwriters, led by BMO Capital Markets and Canaccord Genuity, have the option of buying an additional 883,500 shares at the same IPO price within the next 30 days.
Magnet Forensics Latest Financials
Magnet Forensics was formed by Adam Belsher, a BlackBerry and Verizon alum, former Waterloo police officer Jad Saliba. The company focusses on selling digital forensics software to private companies and law enforcement agencies.
Magnet's products allow investigators to collect legally obtainable digital evidence and enable them to work at a fast pace. It claims to have some 4,000 customers across 94 countries.
Its total recurring revenue soared to US$ 35.8 million in 2020, up from that of US$ 25.5 million in 2019. Magnet’s total revenue for fiscal 2020 stood at US$ 51.2 million, representing a 38 per cent compound annual growth rate (CAGR) increase over a period of two years.
In 2020, its gross profit was US$ 48.6 million and its net income was US$ 10.6 million.
