Demand is strong for Coveo shares, if we have to rely on the orders made so far by investors as part of the initial public offering of the Quebec company specializing in artificial intelligence applied to the market. online business.
According to our information, the share issue is “substantially” oversubscribed with more than $ 1 billion in orders, which should allow Coveo to land and even exceed the initial market value of around $ 1.5 billion. ‘she wants to get when the title is offered on the market Thursday morning. Press cannot reveal its sources because the file is confidential.
Coveo said last week that it wanted to raise $ 215 million with its initial public offering, an amount it plans to use to strengthen its financial position and pursue its growth strategy.
If the exact level of oversubscription could not be obtained, the situation nevertheless suggests that Coveo will put an end to a series of failed listing projects by Quebec companies.
Earlier this month, the Montreal digital advertising platform Sharethrough’s listing on the stock exchange collapsed. It was the third Quebec company in five months to back down after filing a prospectus.
In September, Longueuil-based beauty and personal care product maker kdc / one canceled its proposed public listing citing market volatility.
In mid-June, Lumenpulse, another Longueuil company, had given up on returning to the stock market, citing “non-optimal” conditions. This company specializing in high performance lighting, which is now known as LMPG, hoped to raise 125 million.
The strength of demand for Coveo stocks inevitably fuels the anxiety of investors who have placed orders, as many may well get only a fraction of what they would like to extract while others may simply not get it. get nothing.
Coveo bankers are to set the initial Coveo share price on Wednesday, and trading in the stock will begin Thursday under the ticker symbol CVO on the Toronto Stock Exchange. A range of $ 13 to $ 15 had previously been set to give investors an indication of the value sought for Coveo.
The principal shareholders of Coveo are its directors, the Fonds de solidarité FTQ, Investissement Québec, Omers (the pension fund for municipal employees in Ontario), as well as the Evergreen funds (a subsidiary of Elliott Management) and QIA (Qatar Investment Authority).
Coveo’s revenue, which has a significant portion of recurring revenue, exceeded US $ 64 million in its most recent fiscal year.
The turnover is up compared to its level of 44 million US in 2019 and 55.5 million US in 2020.
A net profit of US $ 11 million was generated for the six-month period ended at the end of September. The gross margin of the activities is between 75% and 80%.
Management estimates the size of its potential market at nearly $ 39 billion.
Coveo was founded in 2005 by Laurent Simoneau, now President and Chief Technology Officer, Marc Sanfaçon (Senior Vice President, Technology) and Richard Tessier (Senior Vice President, Products).
The company is managed by Louis Têtu, who first joined in 2008 as an investor and member of the board of directors. He became CEO in 2012. The company’s workforce is approximately 750 employees.
As of this fall, Coveo reports that its cloud platform is used by more than 475 customers around the world.
Management claims that its platform results in a higher conversion rate of purchases and complementary sales improving the shopping basket and greater customer loyalty, which translates into repeat and recurring purchases.