Coveo closes over-allotment option, raises additional $32 million as part of IPO

Coveo after IPO launch
Coveo is one of the few Canadian tech companies to see early success after IPO this year.

Québec City-based Coveo has closed its over-allotment option, pulling in another $32 million from its Toronto Stock Exchange (TSX) debut where it raised $215 million.

“Business has moved into the digital experience economy where relevance wins.”
– Louis Têtu

As a result of the full exercise of the over-allotment option, 2.1 million shares were sold to the underwriters, bringing Coveo’s gross proceeds from its initial public offering (IPO) to $247.4 million.

The offering was made through a syndicate of underwriters led by BMO Capital Markets, BofA Securities, RBC Capital Markets and UBS Investment Bank, as joint bookrunners, and Canaccord Genuity Corp., Oppenheimer & Co. Inc., National Bank Financial Inc., Scotiabank, TD Securities Inc. and Ramirez & Co., Inc.

Launched in August 2004, Coveo initially offered SaaS solutions in the advanced search engines market.

RELATED: Anatomy of an IPO: How Coveo prepared to take itself public

Using AI and machine learning, Coveo offers e-commerce products that use data to create personalized experiences for the consumer. Its Coveo Relevance Cloud product aggregates data from digital interactions and uses AI to embed relevant content into a user’s search results, recommendations, and personalization.

The company claims a global customer base of more than 475 companies, with most coming from North America.

Coveo began trading on the TSX on November 18 under the symbol ‘CVO.’ From its IPO, the company raised $215 million, selling 14.3 million shares priced at $15 each.

It first filed to go public on November 3, and in its prospectus company chair and CEO Louis Têtu said businesses operating digitally is not enough when it comes to reaching a larger audience, and that AI systems have the capability to become the solution.

“Business has moved into the digital experience economy where relevance wins,” he said, adding that Coveo was incorporated with the goal of fixing search relevance for enterprises. “Being relevant to a million people, at the same time, is not humanly possible without AI.”

Charlize Alcaraz

Charlize Alcaraz

Charlize Alcaraz is a journalism student at Toronto Metropolitan University and a staff writer for BetaKit. Follow her on Twitter @charlizealcaraz

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