Fintech company's entry coincides with TSX record high
The online fintech company Propel Holdings closed its initial public offering Wednesday, raising $61 million.
Propel sold 6,250,000 common shares at $9.75 per share, trading under the symbol “PRL.” Stikeman Elliott acted for Propel Holdings and Blake Cassels & Graydon LLP acted for the underwriters.
Propel provides access to credit for underserved consumers through a proprietary online lending platform. According to the company website, the platform has assisted 500,000 people through its operating brands, MoneyKey and CreditFresh.
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The IPO followed a record day on the TSX. On Tuesday, the Toronto Stock Exchange’s S&P/TSX composite index reached 101.20 points, or 0.5%, at 21,188.19, Reuters reported. Since the beginning of the year, the TSX has advanced by 21.5 per cent and outperforms S&P 500 which is up 20.8 per cent.
According to Clive Kinross, co-founder and chief executive officer of Propel, "The completion of this offering marks a major milestone in Propel's journey to become a leading, global fintech platform, and is the result of the commitment and passion of our incredible team."
Kinross then goes on to say, “With this listing, we are entering our next chapter in a strong position for continued growth and remain as dedicated as ever to our consumers and in our belief that every individual deserves access to credit."
The IPO is managed by a group of underwriters headed by joint bookrunners Canaccord Genuity and Scotiabank and underwriters Raymond James, TD Securities, INFOR Financial, Roth Canada and Stifel Nicolaus Canada.
Through the over-allotment option given by Propel, underwriters can also purchase up to an additional 937,500 Common Shares at a price of $9.75 per Common Share for additional gross proceeds of up to $9,140,625. This option is valid in whole or in part for underwriters within 30 days from the IPO closing date.
The IPO is in accordance with Propel’s final prospectus dated October 13, 2021.
Stikeman's deal team included David Weinberger, Colin Burn, Christian Vieira, Alex Carmona, Daniela Chang, Daniel Weiss, Anthony Iafrate, Jorge Caicedo, Alexandra Mathieu, Mathurhaen Sirikantharajah, Jonathan Willson, Sarah Visentin, Khalfan Khalfan, Chelsea Kirsch, Franca Greco and Stephen Jaggers.
Blake's team consisted of Jeff Glass, Linda Tu, Jonathan York and Demi Toneguzzo.
