Kitchener-Waterloo startup Magnet Forensics, which develops digital investigation software for forensic professionals, plans to raise $90 million CAD in an initial public offering (IPO) on the Toronto Stock Exchange (TSX).
The company filed its preliminary prospectus Thursday, and plans to trade on the TSX under the symbol ‘MAGT.’ The company plans to sell between 5,625,000 and 6,428,571 shares at a price between $14 and $16.
Magnet Forensics is one of a number of Canadian tech startups that have turned to public markets in recent months.
BMO Capital Markets and Canaccord Genuity Corp. are acting as lead underwriters and joint bookrunners for the IPO. The offering also includes an over-allotment option, which, if exercised in full, would bring the transaction’s proceeds to $103.5 million.
Magnet Forensics said it intends to use the net proceeds from the offering to strengthen its financial position and pursue its growth strategies.
Founded in 2010, Magnet Forensics develops digital investigation software that acquires, analyzes and shares evidence from computers, smartphones, tablets and IoT-related devices. The startup claims its software has been used by more than 4,000 law enforcement, government, military and corporate organizations in over 92 countries.
According to Magnet Forensics, evidence recovered by the startup’s tools has been used to support investigations into cybercrimes, child exploitation, terrorism, human resource disputes, fraud, and intellectual property theft.
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Over the last 10 years, Magnet Forensics has completed several notable milestones. In 2017, the startup acquired Virginia-based Sentinel Data, including its team. The following year, the company partnered with the Child Rescue Coalition in order to combat child exploitation.
Magnet Forensics is one of a number of Canadian tech startups that have turned to public markets in recent months. Others include SaaS startup Vendasta, FinTech firm Payfare, healthtech companies Dialogue and Mednow, and e-commerce startups General Assembly Pizza and KITS Eyecare. Thinkific also filed to go public on the TSX, and recently priced its IPO at $160 million.
Amid the influx in Canadian companies going public over the past year, the market has dulled a bit with a more recent sell-off of growth stocks that have reportedly led to companies like Vendasta struggling to sell shares.