October 19, 2021

The Queens County Citizen

Complete Canadian News World

Canadian payment company Nuwe has made history with the most valuable tech IPO on TSX

Canadian payment company Nuwe has made history with the most valuable tech IPO on TSX

Shares of payment processing company Nuwei Corp began trading on the Toronto Stock Exchange on Thursday, raising 700 million in the largest initial public offering of a technology company in TSX history.

Founded in Montreal, Nuwei is a payment processing company with nearly 800 employees and approximately 50,000 customers, processing more than $ 35 billion worth of transactions through the company network during the year to the end of June. The vast majority of its customers are in the rapidly evolving world of sports betting.

The company announced earlier this month that it plans to sell 26 million shares in TSX, priced between $ 20 and $ 22. But strong demand for the shares allowed the company Do more of its shares on Wednesday, At a rate of $ 26.

It’s worth more than $ 700 million to make the largest initial public offering (or IPO) of a tech company in dollar terms in TSX history – more than the IPOs of Blackberry and Shopify at the time.

When trading in shares that opened on Thursday for institutional investors on the TSX, they reached a share of around $ 45, according to Bloomberg data.

Shopify has recently become the most valuable company in Canada, Crossed the Royal Bank. By last count, Shopify was worth $ 136 billion, but when it was unveiled in 2015, The company raised only $ 130 million In its IPO.

BlackBerry, then known as Research in Motion, raised $ 100 million in the 1997 IPO. Eight years later, RIM is the most valuable company in Canada, At its peak of $ 67 billion.

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Nouveau raised $ 270 million from private investors last December, including Quebec’s pension plan, Kaisse de Depot et Placement du Quebec.

According to regulatory filings, the company earned revenue of Rs 5,245 million last year, but lost Rs.59.5.5 million after deducting expenses.

Shares of so-called FongTech companies – Facebook, Apple, Amazon, Netflix and Google – were on fire during the epidemic. (Michael Nagley / Bloomberg)

Nuwei’s IPO comes as the buzz around investing in the tech sector is high, as many companies in the industry are resilient and making progress in business amid the COVID-19 epidemic.

Shares in Netflix, Amazon, Google, Facebook, Apple and other tech names made huge gains during the epidemic as millions of people trapped at home created huge demand for online services.

Companies like Nuwei are keen to enter the market to reduce investor demand for tech shares.

According to Stephanie Price, an analyst with CIBC, 23 technology companies went public between June and August, raising $ 9.4 billion in the process. On Wednesday, US market watchers were in a frenzy as software company Snowflake went public with an IPO, and its stock price doubled in its first day of trading.

About 95 percent of all North American IPOs this summer are by tech companies, and more are coming.

“The rebound in technology names is a good sign for private tech companies with plans to list their shares publicly in the coming weeks,” Price said in a note to clients.

As of the end of August, 211 technology companies were listed on both TSX and TSX Venture Exchange, valued at $ 289 billion.