TORONTO – Kinaxis Inc trimmed the expected offer price of its initial public offering on Tuesday, in a sign that market demand for the Canadian software company’s equity issue may not be as hot as originally expected.
The Ottawa-based company, which provides software to help with supply chain operations, now plans to raise C$100.6 million ($92.34 million), it said in a regulatory filing. It previously said it expected to raise between C$108.4 million and C$123.8 million,
The offering is being structured as an IPO combined with a secondary offering from Kinaxis’s current investors, private equity firms HarbourVest, based in Boston, and TechnoCap, based in Montreal, the company said in the filing.
Kinaxis is selling 5 million shares from its treasury, with the remaining 2.74 million being sold by the two fund managers. Following the close of the deal, HarbourVest will retain a roughly 14.7 percent stake in the company, while TechoCap will hold about 23.3 percent, the filing said..
Those stakes could be reduced a bit, if BMO Capital Markets and Canaccord Genuity Corp, the firms book-running the deal, opt to purchase a further 1.6 million shares to cover for any over-allotments.