It has just completed its fourteenth day as a public company, but the IPO of Ottawa’s Halogen Software (TSX:HGN) is already looking like a success.
Those investors who got in on the company’s oversubscribed IPO are already up by double digits. The company raised just over $50-million by selling 4,365,218 shares at $11.50 each.
The stock closed its first day of trading at $13.20 and today up 5.7% to $14.
Earlier this week, Halogen exercised its “greenshoe” over-allotment option, issuing 720,000 additional shares at $11.50 to raise an additional $8.3-million.
Halogen’s timing may have had something to do with its success. The company was the first major IPO in the year and a half since Vancouver’s Avigilon went public. The Canadian tech sector is now seeing investor interest at levels it hasn’t seen in years.
Prior to the IPO, Halogen CEO Paul Loucks told The Globe and Mail as much; “At this point in time we thought it was a great opportunity to go to the markets and raise additional capital,” he said.
Cloud-based talent management company Halogen Software was founded in 2001 by current chairman and former Corel CFO Michael Slaunwhite and VP Yvon Martel. The company, which sells products that manage aspects of worklife such as recruitment and succession, posted 2012 revenue of $38-million.