BroadbandTV looking to go public on TSX through $172 million IPO

BBTV

BBTV Holdings, the holding company of Vancouver-based media and technology company BroadbandTV, has filed for an initial public offering (IPO) with the Toronto Stock Exchange (TSX).

BroadbandTV is one of several Canadian tech companies to make moves in public markets this year.

BBTV Holdings is looking to raise $172.4 million CAD through the IPO by issuing subordinate voting shares priced at $14 and $22.50 per share. The company plans to list on the TSX under the symbol BBTV. The TSX has yet to conditionally approve the company’s listing application.

BroadbandTV creates, distributes, manages, and monetizes video content. The company provides end-to-end content management and technology solutions for independent content creators and media companies to grow their presence online.

BroadbandTV was founded in 2005, before Google acquired YouTube for $1.65 billion. Within four years, the National Basketball Association became a client of BroadbandTV, which spurred other media conglomerates like A&E and Sony to follow suit.

According to BBTV’s prospectus, $158.8 million of the IPO proceeds will be used to acquire the issued and outstanding securities of BroadbandTV from the Canadian division of European media company RTL Group.

In 2013, RTL Group invested $36 million into BBTV in exchange for a 51 percent stake in the company. At the time, the deal marked the largest private placement into an internet media company in Canada since 2007. BBTV currently owns 49 percent of BroadbandTV. According to The Globe and Mail, the IPO would allow BBTV Holdings to buy out RTL Group’s ownership of BroadbandTV.

RELATED: Lightspeed POS closes NYSE initial public offering at $397 million USD

In 2018, BroadbandTV partnered with United States-based public broadcaster PBS to manage fan-uploaded content on YouTube for shows like Nova, Frontline, and Nature. Last year, the company announced 575 million unique viewers each month milestone, making it second only to Google in terms of all monthly internet viewership.

The IPO is being led by Canaccord Genuity Corp. and Scotia Capital Inc. According to the recently-filed prospectus, BBTV’s revenue has increased from $33 million annually in 2014 to $372 million as of 2019.

BroadbandTV is one of several Canadian tech companies to make significant moves in public markets this year. The most recent notable Canadian tech startup to go public was Toronto-based Nuvei, which made its TSX debut and raised an $833 million USD IPO, the largest in Canadian history.

Last month, Lightspeed also began trading on the New York Stock Exchange after closing a $397 million USD IPO. In May, Emerge Commerce also announced plans to go public on the TSX Venture Exchange.

Image source Wikimedia Commons.

Isabelle Kirkwood

Isabelle Kirkwood

Writer, globetrotter, drone pilot & David Attenborough enthusiast