Kits Eyecare files $40M IPO on TSX

[see our updated story: BDC Capital backed Kits Eyecare prices $55M TSX IPO December 24, 2020]

Kits Eyecare Ltd. has filed a preliminary prospectus in connection with a proposed initial public offering (IPO) of its common shares.

Terms of the offering have yet to be determined. Kits Eyecare expects to issue 4,705,883 to 5,333,334 common shares at an offering price of between $7.50 to $8.50 per share.

Kits Eyecare has applied to list its common shares on the Toronto Stock Exchange (TSX) under the symbol “KITS.”

Based on the mid-point of the offering price range, Kits Eyecare would have 29,625,000 common shares issued and outstanding, including the exercise of the over-allotment option.

Roger Hardy and Sabrina Liak would be the two largest individual shareholders, controlling 8,602,855 shares (29.0%), 3,727,591 shares (12.6%) respectively. Former shareholders of LD Vision Group, which was acquired by Kits in April 2019, would control 10,762,500 shares (36.3%).

Founded in October 20018, Vancouver based Kits is a growing digital eyecare platform. Co-founder, Chairman and CEO, Hardy, was formerly co-founder & CEO of Coastal Contacts Inc., an online and direct retailer of eyecare, that was acquired by Essilor in 2014 for $445 million.

For the nine months ended September 30, 2020, Kits reported $54.93 million in revenues, $2.53 million in operating income, $0.37 million in net loss.

As of September 30, 2020, Kits had 49 employees, of which 13 were employed at the head office, and 36 were employed at its distribution and fulfillment centre.

photo credit: Kits Eyecare