David George-Cosh

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The next Canadian tech darling may very well be Nuvei Corp. after the Montreal-based payment processor's stock climbed more than 50 per cent in its first hour of trading on the Toronto Stock Exchange on Thursday. 

The company, which helps to facilitate online and in-person transactions between merchants and payment services, listed its stock on the TSX at US$26 a share prior to Thursday's market open following strong demand it received during an initial marketing campaign that aimed to raise about US$700 million. 

Nuvei was previously valued at about US$2 billion late last year following a recent financing round led by shareholders Caisse de depot et placement du Quebec and private equity firm Novacap Investments Inc. that raised US$270 million in equity. The company's initial public offering (IPO) was led by a syndicate of underwriters led by Goldman Sachs Group Inc., Credit Suisse Securities Inc., BMO Capital Markets and RBC Capital Markets. 

Nuvei's shares are currently available to institutional investors only, until next week when retail investors will be able to participate in trading its stock. 

The company was founded in 2003 and has rapidly expanded since then, with nearly 800 employees and another 50,000 merchants globally that use its payment platform. Most of Nuvei's business is centred on mobile and e-commerce firms, with the company servicing a wide range of industries including online gambling, travel and online retail. 

Nuvei reported revenue of $245.8 million in its fiscal 2019 while posting a net loss of $69.5 million, according to company filings. 

Nuvei's performance on Thursday comes in the wake of a broad technology rally that has seen investors plow heavily into U.S. and Canadian firms, while mitigating any concerns from a stalled pandemic-induced economic recovery.

Last week, Montreal-based tech firm Lightspeed POS Inc. raised US$397 million after listing its shares on the New York Stock Exchange.