The best domestic tech IPO momentum of this century

If you haven’t been paying attention of late, you might not have noticed that the Canadian tech IPO window is as open as it has been this century.

Let’s review the most recent list in order (as best I can recall, anyway) of getting out the door:

March Networks (MN:TSX) – joint TSX / AIM offering

Constellation Software (CSU:TSX) – large, modest growth, profitable, impressive management; shares have traded up very nicely

Sandvine (SVC:TSX) – first dipped their toe on the AIM; then came back to the TSX; overnight success, despite many years of hard work; shares have traded up strongly

ESI Entertainment (ESY:TSX) – whacked by U.S. gambling laws

Redline (REDL:AIM) – AIM only; very modest share trading

Redknee (RKN:AIM) – no shares have traded since May 9th; that’s the AIM for you

Dragonwave (DWI:TSX) – Joint TSX and AIM listing; flat price post-IPO

Espial – in marketing right now; IPTV is a great space to be in right now (we invested via Bluestreak); buyside’s reaction to revenue size will be interesting

Rugged.com – in marketing right now

Terago – filed their IPO today

It’s a long list and it is breathtaking. It wasn’t that long ago that a single tech IPO (Workbrain) got the street excited. And to think some dealers are cutting back on their investment banking tech practices, in the face of this list!

And then there’s the treasury offering list: Descartes (decent bought deal), Intrinsyc (a portfolio co.; succeeded with a recent $20MM raise), Enablence (trying to raise $50MM from a TSXV base), etc.

Think of the dichotomy: the pool of venture capital in Canada is shrinking in every region other than Quebec, just as the tech IPO (and secondary) market is as robust as it has been since 1999.

MRM