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Canadian generation company Lightspeed is its fortune in the U. S. market in the hope that investors will need part of its virtual payments business.
On Friday, Lightspeed POS Inc. ‘s shares began trading on the New York Stock Exchange, racking up $305 million for the Montreal-based company’s cloud generation business.
“There is a lot of respect for the Canadian generation and canadians for being generation leaders and leaders of elegance,” said CEO Dax Dasilva.
“Many of our U. S. investors have encouraged us, quarter after quarter, to a board in New York. “
The name didn’t start out perfectly. The shares opened at $ 32 after underwriters valued them at $ 30. 50 in an initial public offering, but after hitting a high of $ 32. 44, the shares closed the day down more than 4% at US $ 30. 25.
Dasilva said the week had been complicated in the markets for generation companies, but said he was convinced that there were “favorable winds” that would gain advantages from the company’s project to help small businesses settle for payments. upload to his procurement list and expand new products, he said.
“A smart part of our consumers is in the United States. . . we seek to further increase our visibility in the United States, as we have that opportunity ahead of us. The global total is moving towards virtual commerce,” he added. Dasilva said.
Lightspeed, already listed on the Toronto Stock Exchange, rewarded through Canadian investors this year.
The Canadian lightspeed public provided a C$16 price in 2019 in line with the stock. Since then, stocks have more than doubled for the industry to more than C$40 each in Toronto.
The company’s commitment to U. S. investors comes at a time when stock markets are looking to make a profit, despite pressure on the economy in total due to the COVID-19 pandemic.
The COVID-19 pandemic pushed more small businesses toward virtual payments, Lightspeed said in August, when it reported a 51% year-on-year increase in sales in the same quarter of 2019.
Dasilva said the company has benefited from a clientele that tends to be more willing to experiment with new technologies. Although Lightspeed has not yet made annual profits, Dasilva estimated that Lightspeed platform stores are developing 4 to six times faster than a classic. Retailer.
“We are very exposed to retail and hospitality . . . initially, I think the market expected us to be very exposed to COVID, given our consumers. But our consumers are also into the future,” Dasilva said.
CIBC Equity Research analyst Todd Coupland said Lightspeed’s Quarterly August sales figures reflected a “solid” monetary position. In a note to consumers, Coupland said Lightspeed’s business was backed by the company’s resolve to offer consumers features to process street collections and cell wallet payments. , as well as integrations with American giants such as Google and Stripe.
In a prospectus presented to its US investors, Lightspeed said it aspired to be a one-stop-shop for small developing businesses that want to buy, track inventory, plan home deliveries and put loyalty programs in place.
In one example, a Pennsylvania sporting goods company had to close its physical retail outlets after the closure of COVID-19, but was able to use Lightspeed’s generation to expand its online sales to 22 new states.
“I think we had a more transparent path to profitability before COVID came along. Now we make sure that . . . the prices of getting a visitor are justified through the long-term price of the visitor,” Dasilva said. “What we perceive from corporations that come from Canada is that they are either cutting edge and grounded . . . we have the DNA to be large foreign and global corporations. “
The 11. 65 million U. S. shares were led by subscribers Morgan Stanley, Barclays and BMO Capital Markets, several RBC, CIBC, Scotiabank and Toronto-Dominion banks, which acted as co-administrators.
This Canadian Press report was first published on September 11, 2020.
Anita Balakrishnan, The Canadian Press