By Craig Patterson
Montreal-based Lightspeed, the powerful cloud point-of-sale system for independent retailers and restaurants, has officially commenced its initial public offering (IPO) which will help the already rapidly growing business further flourish amid considerable success.
As part of the IPO, Lightspeed issued 15-million subordinate voting shares at a price of $16 per share, resulting in gross proceeds of $240-million (all Canadian dollars). The IPO was increased from $200-million to $240-million with an increase in the initial share price, which was marketed at between $13 and $15 per subordinate voting share.
The Toronto Stock Exchange (TSX) approved the listing of the subordinate voting shares which began trading on the TSX on the morning of March 8, 2019 under the ticker "LSPD". Lightspeed founder Dax Dasilva was in attendance.
The IPO is expected to close on March 15, 2019, subject to the satisfaction of customary closing conditions. BMO Capital Markets, National Bank Financial Inc. and J.P. Morgan Securities Canada Inc. are acting as lead underwriters and joint bookrunners for the offering.
CIBC World Markets Inc., TD Securities Inc., Raymond James Ltd. and Scotiabank are also acting as underwriters for the IPO.
Rapidly growing Lightspeed is being used by thousands of businesses worldwide, with new innovations continually being added. In December of 2018, Lightspeed announced ‘Lightspeed Loyalty’, the new technology provides retailers and restaurants the ability to create a dialogue so that first-time guests become regulars, and existing customers become more engaged. It’s all done through a single platform which provides the tools to better communicate and target their customers in a personalized way. We recently covered Lightspeed Loyalty in Retail Insider.
Lightspeed continues to work with thousands of independent retailers and restaurants globally in order to level the playing field against larger retailers. Lightspeed was founded by Dax Dasilva in 2005 in Montreal, and it has grown to nearly 700 employees with global offices in Canada, USA, Europe, and Australia.
In October of 2018, Lighspeed also launched the innovative Lightspeed ‘Retail Success Index’, which is an industry-validated questionnaire that independent retailers can utilize to determine a score for their business that will reveal new insights and opportunities for advancement. The Retail Success Index empowers independents to delve deeper into the current state of their businesses. That includes measuring their stance among competitors by identifying their strengths and granting them knowledge on areas their company can improve. Information gained is useful to retailers, no matter how long they have been in business. The five-minute questionnaire provides valuable information on the spot, and retailers can take the test every few months in order to monitor their growth.
The company’s other innovations include the recently introduced Lightspeed Analytics, which is geared towards independent retailers and is designed to provide retailers with insights and recommendations into their sales, inventory, employee performance and customer behaviours, with an aim of providing retailers a competitive edge in their industry. We recently profiled Lightspeed Analytics at length in a previous article.
Lightspeed’s IPO speaks to the success of the brand, which has seen explosive growth since its inception only 14 years ago. The added funds will provide Lightspeed the opportunity to continue to grow its business and gain market share as businesses adopt Lighspeed’s platforms globally.
Now located in Toronto, Craig is a retail analyst and consultant at the Retail Council of Canada. He's also the Director of Applied Research at the University of Alberta School of Retailing in Edmonton. He has studied the Canadian retail landscape for the past 25 years and he holds Bachelor of Commerce and Bachelor of Laws Degrees. He is also President & CEO of Vancouver-based Retail Insider Media Ltd. Email Craig: firstname.lastname@example.org