Human resources software company Ceridian HCM Holding Inc. (Ceridian Stock Quote, Chart, News: TSX:CDAY, NYSE:CDAY) began trading on both the TSX and NYSE today with an initial public offering (IPO) that raised US$462 million, making it the largest tech company by market capitalization to ever IPO in Canada.
Founded in 1992, Ceridian has been around for longer than most tech companies, with its current iteration having a lot to do with its acquisition in 2012 of Canadian software company Dayforce Inc. The company realigned itself as a cloud platform software-as-a-service (SaaS) provider of HR management functions with a reach to over 50 countries worldwide. Based in Minneapolis, Ceridian is managed out of Toronto by CEO David Ossip, former Dayforce chief.
“I am extremely proud of our Canadian heritage. With almost 2,000 employees and the majority of our leadership team here, we are committed to advancing technology innovation in Canada,” said Ossip to mark the occasion in a news release. “Ceridian’s listing on the Toronto Stock Exchange validates this commitment as we continue to disrupt the human capital management market and make work life better for people in Canada and around the world.”
Ceridian will sell 21 million shares at US$22 each, with an underwriting syndicate led by Goldman Sachs, JPMorgan, Credit Suisse and Deutsche Bank and also including CIBC Capital Markets and Canaccord Genuity.
With a market cap of approximately US$3 billion, CDAY becomes the largest tech company to IPO and one of the 30 largest TSX-listed companies by gross proceeds raised. Altogether, the TSX and TSX-Venture are said to host 421 technology and innovation companies with a combined market capitalization of over C$193 billion.
“We are proud to welcome Ceridian, a company championing progressive change for businesses across the world, to TSX,” said Loui Anastasopoulos, President, Capital Formation, for TMX Group. “Supporting the vibrant growth of technology companies around the world is a primary objective for TMX’s capital formation ecosystem and we continue to seek out innovative solutions to address the needs of our domestic and international clients.”