Montreal tech firm Nuvei files for IPO in Canada
Payments processing company Nuvei Inc. is looking to tap into the boom in investor interest in Canadian technology stocks, filing papers to go public on the Toronto Stock Exchange. The Montreal-based firm was founded in 2003 and counts Caisse de dépôt et placement du Québec and private equity firm Novacap as two of its major backers.
Here’s seven things investors should know about Canada’s next big tech IPO.
- The company raised $358 million in common equity financing in December 2019, valuing the firm at $2.65 billion. The investment was led by existing shareholders, including the Caisse and Novacap.
- Nuvei’s preliminary papers didn’t specify the size or pricing of the offering, though that’s common practice in the initial stages of filing to go public in Canada.
- Nuvei plans to list under the ticker symbol “NVEI”
- Like many tech companies, including Shopify Inc. and Alphabet Inc., Nuvei is planning a dual-class share structure. The multiple-voting shares will each hold 10 votes, while owners of the subordinate shares will get one vote.
- The path to profitability may be rocky for the company. Nuvei brought in US$245.9 million in revenue in 2019 but posted a net loss of US$69.5 million. The company said it has historically generated net losses since its founding in 2003 due to investments in growth.
- Merchants using Nuvei’s platform generated US$35.3 billion in volume during the 12 months leading up to June 30, 2020.
- Nuvei’s clients are largely in the online gambling, online retail and financial services sectors.