Xplornet Said to Work With BMO, RBC on Internet Provider’s IPO

Xplornet Communications Inc., a provider of high-speed Internet for rural Canadians, is working with Bank of Montreal and Royal Bank of Canada on an initial public offering planned for this year, according to people with knowledge of the matter.

The Woodstock, New Brunswick-based firm hasn’t yet settled on an amount or price range for the IPO, said the people, who asked not to be identified because the matter is private.

Allison Lenehan, Xplornet’s chief executive, said in May investors have put about C$1 billion ($758 million) into the company over the past decade. While they remain supportive, the company was looking for ways to keep growing, including potentially through an IPO, he said.

Representatives from BMO, RBC and Xplornet declined to comment.

Xplornet spent C$25 million on new wireless spectrum in a government auction earlier this year, and said at the time the added spectrum would allow it to increase its coverage space and add customers. The company provides high-speed Internet to 280,000 residential and business subscribers in rural areas through a mix of cellular towers and satellites.