Ottawa-based Kinaxis Inc. is planning an initial public offering on the Toronto Stock Exchange.
(Stock image)
Earlier this month, Kinaxis, which sells cloud-based supply-chain management software, filed a prospectus with securities regulators across the country.
(Sponsored)
In a tough economy, investing in community is more important than ever
When finances are tight, it might seem counterintuitive to give back, but supporting our most vulnerable neighbours this holiday season can actually help businesses weather their own challenges. At United
Giving Guide 2025: Ottawa Regional Cancer Foundation
As Ottawa’s only Community Cancer Hub, we are delivering Supportive Cancer Care through dynamic collaborations with over 70 diverse community partners.
The company says it plans to use the proceeds of the IPO to pay down US$30 million in debt, according to the preliminary prospectus. It also plans to use 40 per cent of the proceeds to strengthen its balance sheet, though the prospectus gave no estimate of the dollar value of that percentage.
It has been estimated that Kinaxis could raise more than $100 million through the IPO, according to the Wall Street Journal.
If all goes according to plan, Kinaxis would be the first local software company to do an initial public offering since Halogen raised more than $60 million in May 2013. It would also be the first technology IPO on the TSX since November.
Kinaxis, which began operations in 1984, has seen big growth over the past couple of years, with revenue increasing from $38 million in 2011 to $60.8 million in 2013, according to the prospectus.
But Kinaxis has struggled with profitability. The company reported a net loss of $9.7 million last year and has an accumulated deficit of $87.1 million.
For the first quarter of 2014, the three-month period that ended on March 31, it had revenue of $15.6 million and a net income of $2 million.
The total number of shares that will be issued and the opening price were not included in the prospectus.
