Stingray Digital soars in first day of trading on TSX

The returns are early, but it looks like another successful technology IPO has hit the TSX today.

Shares of Montreal-based streaming music provider Stingray Digital Group (Stingray Digital Group Stock Quote, Chart, News: TSX:RAY.A) are up sharply on heavy volume this morning after the company completed a $140-million IPO by selling 22.4 million shares at $6.25 to raise $140-million. A greenshoe option could raise the company another $21-million in the days to come.

Stingray began life in 2007, with the Karaoke Channel, expanding after the acquisition of Galaxie from the CBC, which it relabeled as Stingray Music. Expanding into Latin America, the Caribbean and Europe over the last several years, Stingray now counts over 180 million customers in 113 countries and has over 225 employees in seven offices worldwide, including in Miami, Tel Aviv, London and Amsterdam.

As well as offering Pay-TV services to consumers, Stingray, through its Business Division, offers streaming and digital display services.

While the consumer-facing service is better known, it’s the B2B solution that brings in the lion’s share, approximately 90%, of its revenue.

Stingray says it plans to use the proceeds of today’s offering to pay down debt.

At press time, shares of Stingray Digital Group were up 17.3% to $7.33 as 6.38-million shares exchanged hands.