Stingray Files to Sell Shares in Canada IPO

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Stingray Digital Group Inc., a provider of streaming music through television and online, seeks to raise about C$120 million ($99 million) in an initial public offering, according to people familiar with the transaction.

The Montreal-based company will sell subordinate voting shares in Canada through the IPO, said the people, who asked not to be identified because the pricing terms aren’t public.

Stingray Digital offers music TV channels, smartphone apps and an online streaming service for consumers and businesses, according to a filing Friday with regulators.

The company was co-founded in 2007 by Chief Executive Officer Eric Boyko with support from Telesystem and Novacap, a private equity firm, when it started The Karaoke Channel. It has since expanded through 18 acquisitions starting with buying Galaxie from the Canadian Broadcasting Corp. in 2009, the filing said.

Stingray, whose pay TV channels reach more than 110 million subscribers worldwide, had C$60 million in revenue in fiscal 2014 and projects C$71 million in sales this year, according to the filing. Proceeds from the IPO will be used to pay down debt and for general corporate purposes.

The filing comes just 10 days after Shopify Inc., a Canadian software company that helps merchants set up online shops, filed for its own IPO. Ottawa-based Shopify and Stingray are among a wave of Canadian technology firms attracting attention -- and funding -- from investors. In March, Rubicon Project Inc. bought digital advertising company Chango Inc. for $122 million.

National Bank of Canada, GMP Capital Inc. and Bank of Montreal are leading the banks arranging the Stingray sale.

Mathieu Péloquin, a spokesman for Stingray, declined to comment beyond the press release and prospectus.

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