AnalytixInsight

This past week was relatively quiet in terms of new public markets funding, in fact, in the United States, Barrons observed — DLocal is the only IPO this week due to the Memorial Day holiday. Next week, several companies are scheduled to go public, including TaskUs, LifeStance Health Group, and monday.com. We hosted an investor presentation for Sophic Client. In Canada, Dye & Durham (DND-TSX), following an indication of interest from a shareholder group led by management to acquire the Company, its board of directors has commenced a process to explore and evaluate potential strategic alternatives focused on maximizing shareholder value. The indication of interest would result in Dye & Durham being taken private at an approximate 23% premium to the current market value, being a per share value of $50.50 — recall the company raised $200 million in equity at $50.50/sh (in addition to convertible debt), a few months ago.

The holiday shortened last week in Canada, saw very healthy levels of capital markets activity, in public markets, including IPOs, equity financings and some convertible debt as well. VC financing had positive newsflow as well. In addition, many companies, including multiple Sophic clients reported their quarterly financial results. In the USA, we’re paying attention to Acorns’ potential SPAC deal, Vimeo’s public market debut, additional stock awards at WeWork, and Amazon’s MGM acquisition, which we mentioned when the potential acquisition first surfaced a week ago. Outside North America, we’re watching Gojek and Tokopedia’s holding group GoTo’s IPO and fundraising later this year, and Paytm’s potential IPO in India.

This past week saw more activity in VC funding relative public markets in Canadian tech and clean tech sectors. In the US, we are eagerly awaiting Robinhood’s S-1 filing, which is expected next week. Interestingly, Robinhood, SoFi and Public plan to give retail investors IPO allocation access, a great move, in our view. In the Fintech space, German trading app, Trade Republic saw a ~9x increase in its Series C financing to ~US$5.5 billion, and Fidelity plans to offer no-fee investment services for teenagers who want to trade stocks and ETFs. For investors, looking for exposure to a similar theme in Canada, Sophic client, AnalytixInsight (ALY-TSXV, ATIXF-OTC), should benefit from its deepening relationship with Intesa Sanpaolo, a major European bank. Outside North America, the Gojek-Tokopedia merger and IPO is anticipated by investors, as another potential super-app. Snap announced its next iteration of AR glasses. In the gaming sector, Saudi Arabia’s US$400 billion wealth fund doubled down on its stakes in US video-game makers and dumped a major oil position in Q1, at the same time, Netflix is looking to hire an executive to oversee an expansion into videogames.

Last week was very volatile for growth stocks, more capital markets activity was skewed towards acquisitions rather than public market financings. Aside from the public market volatility, we are very encouraged by a recent techcrunch piece highlighting Shopify’s former employees taking on founder and investor roles, which in our view is very positive for the Canadian tech ecosystem, as are Google’s plans to build a $735 million data centre in Québec. As the energy consumption of Bitcoin has gained a lot of attention in the past week, Canadian bitcoin ETF issuer Ninepoint Partners announced Monday that it is planning to “fully offset” its carbon footprint, as it seeks to reassure investors concerned about the negative environmental impacts of cryptocurrency mining. In the USA, we are anticipating the Bird’s SPAC, as well as Better’s public markets debut, and a potential IPO by Flipkart in India.