Dialogue closes TSX IPO, raising $100 million

Dialogue co-founders

Telehealth startup Dialogue Health Technologies has gone public on the Toronto Stock Exchange (TSX), raising $100 million through its previously announced initial public offering (IPO). The Montréal-based firm began trading today on the TSX under the symbol “CARE.”

Dialogue sold an aggregate of 8,334,000 common shares at a price of $12 per share, securing total gross proceeds of approximately $100 million CAD. Dialogue plans to use the fresh funding to expand its product offering, build and implement new health services in end-markets, grow its customer base, and acquire or invest in complementary businesses.

Dialogue plans to use the fresh funding to expand its product, build new health services, grow its customer base, and invest in complementary businesses.

The telehealth company, which offers a virtual care platform that targets employers, aims to provide affordable, on-demand access to healthcare. Dialogue delivers online health and wellness programs through its app, which is available for smartphone, desktop, or tablet. The company joins a growing list of Canadian healthtech startups that have tapped public markets in recent months that includes Mednow and MindBeacon.

“This IPO is an exciting new chapter for Dialogue and will not change our number-one focus to facilitate the delivery of high-quality care to our members and customers,” said Cherif Habib, co-founder CEO of Dialogue. “We will continue growing our platform, launching new health and wellness programs and bringing our solution to millions of people worldwide.”

The IPO was orchestrated by a syndicate of underwriters led by National Bank Financial, RBC Capital Markets, Scotiabank, and TD Securities as joint bookrunners. It was also supported by CIBC World Markets, Desjardins Securities, Canaccord Genuity Corp., iA Private Wealth, INFOR Financial, and Laurentian Bank Securities.

Founded in 2016, Dialogue was incubated in Diagram Ventures. The Globe and Mail first reported last month that Dialogue was planning to list on the TSX.

Last year, the company saw significant growth. Dialogue reported that its revenue grew by 187 percent compared to 2019. The company reached $60 million in annual recurring revenue as of the end of January.

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Dialogue claims it has the most extensive partnership network in the Canadian insurance industry, serving four of Canada’s top five carriers. This amounts to approximately 2.5 million Canadian members and their dependents who access the company’s virtual platform.

In 2020, Dialogue generated $36 million in revenue, incurring a net loss of $20.2 million, which the firm attributed to investments it made to grow its business.

Last year, Dialogue acquired two companies: Argumed Consulting Group and Optima Global Health. These purchases expanded Dialogue’s product offerings into Employee Assistance Program services and opportunities in Europe.

Dialogue has raised more than $200 million to date, including a $43 million round led by Canadian life insurance company Sun Life Financial in July 2020. The company’s backers include Caisse de dépôt et placement du Québec, Portag3 Ventures, White Star Capital, and First Ascent Ventures.

Photo courtesy of Dialogue

Josh Scott

Josh Scott

Josh is a BetaKit staff writer who loves to tell Canadian business and tech stories. His coverage is more complete than his moustache.