Strong Demand for Pivotree Prices IPO

Posted on October 21, 2020 by Mathieu Litalien

StockTrades Take:

Globe and Mail is reporting that Pivotree has experienced considerable demand for its IPO. According to sources, Pivotree has doubled the size of its IPO. It received more than $600 million worth of orders when it was only looking to raise $35M at a price between $6.50 and $7.50 per share. 

Now, the expectation is that the company has priced the IPO at $8.50 per share and will raise $60 million with a $9 million over allotment option. This will give it a market cap of $210 million at issue according to the Globe. 

There is a disconnect between our previous analysis that the market cap provided by the Globe. Clearly, the number of shares outstanding as of June 30 statements are misleading. We will have to wait for the final prospectus to know the final number of shares outstanding and recalculate the expected valuation. Of note, the preliminary prospectus did not have the final share count, so we simply based our calculations off the information in the June 30 financials. 

Of note, none of this is official yet. This information is based on an article released late yesterday by the Globe and Mail in response to sources close to the deal. Once it is official, we will report back with what will be the final prospectus. 


Disclaimer: The writer of this article or employees of Stocktrades Ltd may have positions in securities listed in this article. Stocktrades Ltd may also be compensated via affiliate links in this post. Stocktrades Ltd will run advertisements on our posts. These advertisements do not represent an endorsement by us.

Mathieu Litalien

About the author

Mathieu is an individual investor and has been investing part-time for the better part of the past 20 years. He is primarily interested in fundamental analysis, focusing on the long-term and his portfolio is composed primarily of dividend-paying equities. Mathieu has a moderate risk profile and also looks for growth and value. His passion for finance and the markets have led him to his MBA and writing for Seeking Alpha and Stocktrades. Mathieu also focuses primarily on stock research and content production for Premium and the Stocktrades blog.