TORONTO, June 3 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
The stock is are now set to price at C$13 a share, compared
with the previous price range between C$14 and C$16.
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
Kinaxis said it plans to use proceeds from the deal toward
debt repayment and for general corporate purposes.
The offering is expected to close on June 10. Shares in the
company are set to trade on the Toronto Stock Exchange under the
($1 = 1.0895 Canadian dollars)
(Reporting by Euan Rocha; Editing by Leslie Adler)