Real Matters Said to Seek C$1.1 Billion Valuation in IPO

  • Real estate data company said to aim for price of C$12 to C$13
  • Share sale to be led by Bank of Montreal, Infor, BofA

Real Matters Inc., a real estate data firm, plans to price shares at C$12 to C$13 apiece in its initial public offering in early May, seeking a valuation of as much as C$1.1 billion ($810 million), according to people familiar with the matter.

The Markham, Ontario-based company plans to raise about C$125 million in the share sale: C$100 million from the treasury and about another C$25 million from existing shareholders, the people said, asking not to be identified as the details aren’t public. Real Matters will price its shares from C$12 to C$13 apiece after a 2-for-1 stock consolidation for existing investors, based on a current range of C$6 to C$6.50 each, the people said.

The company is planning to disclose the price range and how much it will raise in a regulatory filing on Wednesday, they said.

Real Matters is expected to price its IPO next week and begin trading in Toronto in early May, the people said. It will be the first major Canadian technology IPO in two years. 

Bank of Montreal, Infor Financial Inc. and Bank of America Corp. are leading the sale.

Representatives for Bank of America, Infor and Real Matters declined to comment. Representatives for Bank of Montreal didn’t immediately respond to requests for comment.

Canadian IPOs

Real Matters would be the first IPO of note for a Canadian technology company since business-software provider Shopify Inc. raised $150.5 million in May 2015. Shares in Shopify have more than tripled since their debut, according to data compiled by Bloomberg.

After a dismal 2016 for new issues, Canada’s IPO market has been more active this year. Three Canadian companies have raised more than C$100 million since the start of 2017 for combined proceeds of C$710 million, including Canada Goose Holdings Inc.’s C$391 million IPO in March.

Calgary-based fracking services firm STEP Energy Service Ltd. priced an IPO Tuesday, raising C$100 million. It is expected to begin trading in Toronto next week. 

Just two IPOs in Canada in all of 2016 raised more than C$100 million. Vancouver-based retailer Aritzia Inc. raised C$460 million in September while Mainstreet Health Investments Inc. raised C$142 million in June.

Real Matters runs an online platform with more than 100,000 agents in property appraising, insurance inspection, title search and mortgage closing. They report their findings through Real Matters, which measures and ranks each appraiser to help buyers and mortgage companies. Its appraisal business serves more than 60 of the top 100 lenders in the U.S., according to its website.

The company is proceeding with the IPO after revealing earlier this month that Chief Operating Officer Alistair Blackburn died on April 2. Blackburn joined Real Matters in 2008 as head of operations and chief financial officer. He was appointed COO on March 7.

(An earlier version of this story corrected a currency error in the second paragraph.)

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