(Reuters) – Stingray Digital Group, a business-to-business music provider and media company, said on Friday it plans to go public through a listing on the Toronto Stock Exchange.
A source familiar with the company’s plans, who asked not to be named as the details of the offering are not yet public, said Stingray plans to raise $120 million via the IPO that is expected to close sometime in early June.
Another source close to the process said the company will raise $67 million from the IPO, while the remaining $53 million will go to the major shareholders, who will be selling a portion of their stakes.
The company, which broadcasts music and video content on a number of platforms from television and radio to the Internet, said it generated earnings before interest, taxes, depreciation and amortization of $27.1 million on revenue of $71 million in its fiscal year ended March 31, 2015.
Montréal-based Stingray, founded in 2007, is headed by Eric Boyko, who owns a 23.35 percent stake in the company. Canadian mid-market private equity firm Novacap owns a 29.44 percent stake, with media and tech holding company Telesystem owning a 42.11 percent interest.
Novacap and Telesystem jointly invested in Stingray in 2007.
Novacap, Telesystem and Boyko were not immediately reachable for comment.
The share offering is being run by National Bank Financial, GMP Securities, BMO Nesbitt Burns, CIBC World Markets, and TD Securities.
The company’s music is broadcast through a number of telecom and cable companies across the globe including Verizon, Comcast, AT&T, Bell, Rogers and Telus in North America, along with rivals like Sky, Ziggo, and Zap in other parts of the world.
The Stingray IPO comes just a week after e-commerce software maker Shopify outlined its plans to go public last week via listing in both New York and Toronto.
Technology companies look set to supplant energy and mining firms as the driver of Canadian initial public offerings this year as global optimism about tech startups boosts valuations and spurs early investors to cash out.
Other Canadian tech names expected to go public this year include property information provider Real Matters, online lender Mogo and PointClickCare, whose software supports the senior care market.
By Euan Rocha and Allison Lampert
(Additional reporting by John Tilak; Editing by Bernard Orr)
(This story has been edited by Kirk Falconer, editor of peHUB Canada)
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