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#Roadblock ipo software#
Its legal software automates workflow and streamlines access to public records, from due diligence searches to corporate registrations, as well as automation of all documents needed to complete a real estate transaction. “It’s one of those steady-eddy companies that continues rolling along,” and has proven itself useful during the current pandemic. In fact, given the nature of the software that Dye & Durham provides, the pandemic showed the market “the benefits and strengths of the business.”Ĭoll-Black says Dye and Durham provides products that work during a market upswing and market downturn. But apart from reducing some staffing and taking steps to deal with Covid-19, there was “minimal impact” to the business. The company had made acquisitions since 2018, came through with earnings that “blew estimates out of the water,” and “right-sized” operations to adapt to the Covid-19 economy, says Coll-Black.Īs for launching an IPO during a pandemic that has been wreaking havoc on the economy, Gorman says that the expectation at the start of the Covid-19 outbreak was that it would have a negative impact. But as the markets warmed up to tech companies, especially those that have proven advantages during a pandemic such as the current Covid-19 outbreak, Dye & Durham realized it was a good opportunity to raise money through a public offering. That downturn was a “real roadblock” in the IPO process, and Dye & Durham didn’t feel comfortable going forward, says Coll-Black. They were also aware that the company was “sensitive” about the IPO process, since the had originally filed an IPO prospectus in 2018, one that had to eventually be pulled as market conditions got choppier. For example, the OSC noted in its bulletin that “if a material issue is raised during the review process, this may cause delays in receipting the prospectus and closing the offering.” Such delays “can cause uncertainty in the market, something that could be reduced through a confidential review process.”īoth Goodmans’ lawyers said that they had had some experience with the confidential filing process on an ad hoc basis prior to the OSC’s decision to allow them more broadly. The decision to allow these filings came after lobbying from issuers saying that greater flexibility and more certainty was needed in planning their IPO prospectus offers. The OSC had allowed confidential filings in certain cases, such as cross-border IPOs, as the U.S.
#Roadblock ipo full#
On March 5, the OSC published a bulletin introducing a harmonized process for full reviews of prospectuses on a confidential pre-file basis, for non-investment fund issuers (those issuers should still use the existing pre-file process).
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The stock opened on the TSX at $11.49 and closed at $14.80 on its first day. The IPO raised $150 million with a debut price of $7.50 per share. Shares of Dye & Durham, a provider of software for law firms and businesses, soared in its debut as a public company on July 17, fuelled by strong demand for technology stocks during Covid-19, especially those that help businesses collaborate as employees work remotely from home. So, having a shorter public period, thanks to the confidential process that allowed regulators to vet the IPO, allowed for more accurate pricing of the deal, and allowed underwriters to fill the order book with greater confidence that the price fairly reflected market conditions.
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This “really set the company up for success with the IPO,” Gorman said, because the time between the preliminary prospectus being made public and the final prospectus was “incredibly short,” just about two weeks when it usually is between five and six weeks.įellow Goodmans partner David Coll-Black, who also led on the IPO, says that the longer a prospectus is in the public eye, the greater risk that the market could change.