Thinkific has announced the official pricing of its initial public offering (IPO) for listing to the Toronto Stock Exchange (TSX).
The company announced Thursday morning it has entered into an underwriting agreement in respect to the offering and is making available 12.3 million subordinate voting shares at a price of $13.00 per share for total gross proceeds of $160,030,000.
Thinkific initially filedto go public in March and earlier this month announced hopes to raise $160 million CAD with shares priced between $11 to $13. According to The Globe and Mail, Thinkific saw strong investor demand despite a recent dulling in the public markets, which led to the company pricing the shares at the top end of its range.
The offering is being underwritten by a syndicate of underwriters led by BMO Capital Markets and CIBC Capital Markets as joint bookrunners. The group also includes National Bank Financial, TD Securities, Canaccord Genuity, Cormark Securities and Stifel Nicolaus Canada.
The underwriters have been granted an over-allotment option to purchase up to an additional 1,846,500 subordinate voting shares at a price of $13 per share. Thinkific reports that this could make for additional gross proceeds of more than $24 million if exercised in full.
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The Vancouver-based company is set to trade on the TSX under the symbol ‘THNC.’ The company plans to use the proceeds from its IPO to invest in sales and marketing, its platform, and other unspecified “future opportunities.”
Thinkific was founded in 2012 by many members of its executive team, including CEO Greg Smith, Chief Strategy Officer Matt Smith, COO Miranda Lievers and CTO Matt Payne. Thinkific offers cloud-based software that helps entrepreneurs and businesses launch, grow, and diversify their businesses by creating and selling online courses and other learning products through its platform. The company currently employs 223 people with plans to increase that number to 500 by the end of 2021.
Last fall, Thinkific raised $22 million CAD in growth financing, which brought its total funding to date to $25 million. Thinkific’s backers include Rhino Ventures, which, in previous filings, noted plans to buy between $20 and $25 million of subordinate voting shares through the new offering. The Rhino Group, along with Greg and Matt Smith own a total of 57 million multiple voting shares, which will account for 78 percent of the outstanding shares after the IPO, with 97 percent voting power.
Photo of Thinkific’s founding team courtesy of Thinkific