Real Matters Inc. (TSX: REAL), a network management services platform for the mortgage and insurance industries, has completed its proposed initial public offering and secondary offering of 12,056,186 common shares at $13.00 per common share for aggregate gross proceeds of $156,730,418, with Real Matters and the selling shareholders receiving $125,060,000 and $31,670,418, respectively.
The common shares commenced trading today on the Toronto Stock Exchange (TSX) under the symbol “REAl”. Real Matters stock opened at $15 and closed at $12.89 after first day of trading.
The offering was managed by a syndicate of underwriters, including BMO Capital Markets, INFOR Financial Inc. and BofA Merrill Lynch as lead underwriters and joint bookrunners and Scotia Capital Inc., TD Securities Inc., Wells Fargo Securities Canada, Ltd., Canaccord Genuity Corp., National Bank Financial Inc. and Raymond James Ltd. as co-managers.
Legal advice was provided to Real Matters by Wildeboer Dellelce LLP and to the underwriters by Torys LLP.
The selling shareholders include EdgePoint Investment Group Inc. (Cymbria Corporation, EdgePoint Canadian Portfolio, EdgePoint Canadian Growth & Income Portfolio and EdgePoint Wealth Management Inc.), Cypress Capital Management Ltd., AGF (AGF Canadian Growth Equity Class, London Life Growth Equity and Great West Life Growth Equity), Fiera Capital Corporation, 370271 Ontario Limited, Property Values Income and Common Shares LP, Mosaic Capital Corp., Maplecastle Corporation, and Heidi Blackburn and the estate of Alistair.
Real Matters will have 93,256,094 shares on fully diluted basis (assuming full exercise of over-allotment option), valuing the company at $1.21 billion at the offering price. Altus Group Limited owns 10,458,142 shares (12.04%) and EdgePoint Investment Group Inc. controls over 7,378,496 shares (8.49%).
Real Matters has raised $117 million primarily from institutional investors since December 2013. Venture capital investors included Whitecap Venture Partners, Urbana Corporation, Radar Capital, Kensington Capital Partner (participated in a secondary transaction in November 2016).
photo credit: TSX