Toronto-based investor relations (IR) software company Q4 has priced its planned initial public offering and is looking to raise $150 million CAD.
In its amended prospectus filed Thursday, Q4 said it plans to price its shares between $10.50 and $13.00 per common share.
With an approximate 59 million in common shares issued if Q4 reaches its funding target, the company could reach a market capitalization of almost $700 million.
The offering consists of an initial public offering of common shares, and a secondary offering based on whether an over-allotment option is exercised. If the over-allotment option exercised in full by the deal’s underwriters, the transaction’s proceeds would total $172.5 million CAD.
Q4 first filed to go public in May, looking to trade on the Toronto Stock Exchange under the symbol ‘QFOR.’ The net proceeds from Q4’s IPO are expected to be used to repay its debts related to credit facilities, which total $20.8 million. The proceeds will also allow Q4 to pursue its growth strategies and make new acquisitions.
The offering’s joint bookrunners include CIBC Capital Markets, National Bank Financial, and Credit Suisse Securities, and underwriters include Canaccord Genuity, Raymond James, RBC Dominion Securities, Stifel Nicolaus Canada, TD Securities, and INFOR Financial.
Q4 offers cloud-based IR and capital markets solutions that reach across websites, virtual events, corporate access, data and analytics, customer relationship management (CRM), and capital markets intelligence.
Q4 claims its platform is used by approximately 2,400 public companies, including half of the S&P 500’s constituent companies, with more than 12 million investors using it every month, as of March 31, 2021.
The company’s prospectus notes Q4 saw strong demand for its offering last year, with revenue jumping 80 percent to $40.4 million USD. The company’s net loss in 2020 totalled approximately $13 million USD. Though Q4 is not yet profitable, the company said it sees a path to profitability as it continues to scale.