Markham-based Real Matters filed on Monday to go public on the Toronto Stock Exchange.
The last Canadian tech company to go public was Shopify in May 2015, when it raised $131 million. Real Matters filed a preliminary prospectus to raise an undisclosed amount on the TSX, and the offering will be managed by a syndicate of underwriters, including BMO Capital Markets and INFOR Financial as lead underwriters and joint bookrunners.
Real Matters’ platform, which targets mortgage lending and insurance industry services, allows independent field agents to create a marketplace for the provision of mortgage lending and insurance industry services. The company also has offices in offices in Buffalo, New York, Cincinnati, Ohio, and Middletown, Rhode Island.
“We may be new to the public markets, but we are not a new company. We have spent the past decade building this business to what it is today,” founder and CEO Jason Smith writes in the letter to shareholders. “Over the last three years, we have more than doubled revenues, and our Adjusted EBITDA has risen nearly six-fold over that period. Those are important achievements, but they are hardly the only measures of value creation. We have a client retention rate of approximately 95 percent, and many of our clients have given us more of their business year after year.”
As reported by The Globe and Mail, Real Matters disclosed that it anticipates revenues in its second quarter, ending March 31, to be “significantly lower” than its $78.9 million posted in the first quarter. However, Real Matters said that it expects revenue to grow over the next five years by 20 to 25 percent annually over its $248.5 million posted in the fiscal year ended on September 30, 2016.
The company’s preliminary prospectus can be found on the SEDAR website.
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