3 Recent Canadian IPOs That Doubled in Price
The Motley Fool
Published Jun 10, 2021 08:00
Updated Jun 10, 2021 08:15
3 Recent Canadian IPOs That Doubled in Price
The past few years have seen a lot of activity in the Canadian IPO scene. In 2020 alone, Canadian IPOs raised $5.5 billion, a substantial increase from the year before. Not only did these IPOs raise a lot of money, but, in many cases, their shares went on to deliver spectacular returns. In this article, I’ll reveal three Canadian tech IPO stocks that doubled — or more — in a short timeframe.
Docebo Docebo (TSX:DCBO)(NASDAQ:DCBO) is a Canadian e-learning startup that went public just last year. Since its IPO, it has risen 376%.
Why has this stock risen so much in the markets?
In many ways, it was pure luck. The COVID-19 pandemic led to a dramatic rise in “work-from-home” stocks, of which Docebo is one. The company provides a cloud service that lets companies quickly set up online training modules. That proved important in a year when it was impossible to train new employees on-site. Thanks to this valuable industry niche, Docebo was able to pick up a number of lucrative enterprise contracts with big corporations. The company’s most recent quarter saw it beat on revenue, which rose 61%. However, earnings were down to a loss from a $700,000 profit a year before.
Facedrive Facedrive (TSXV:FD) is a TSX ride-sharing stock that has risen over 600% since its IPO last year. At one point, it was up 2,500%, but it has fallen dramatically since then. This company’s main claim to fame is the dramatic revenue growth it produced in the quarter after it went public. In that quarter, had $380,000 in revenue, up from just $36,000. That’s a growth rate in excess of 1,000%. However, it’s important to note that it’s very easy to grow when you’re starting from a small base amount — especially when you pick up millions in funding along the way.
Lightspeed POS Last but definitely not least, we have Lightspeed POS (TSX:LSPD)(NYSE:LSPD). Lightspeed is a Canadian retail POS company that went public in 2019. Since its IPO, it has risen 393%. The gains here haven’t been as spectacular as those of Facedrive or even Docebo, but they’ve been more steady and dependable. Lightspeed has gone on only one major dip since going public, and that was in March 2020 — when everything was crashing. Since then, it has recovered and climbed to all-new highs.
Of all the stocks on this list, Lightspeed is perhaps the most mature as a business. It has a dependable roster of retail and e-commerce clients that it processes payments for, all of which generate substantial recurring revenue year after year. Lightspeed’s most recent quarter was a huge win. In it, revenue grew 127% and GTV grew 76% year over year. The company did run a loss in the quarter, but it was not large as a percentage of revenue. Overall, Lightspeed is a fast-growing company that may be a worthy tech play to consider.
Get The App
The post 3 Recent Canadian IPOs That Doubled in Price appeared first on The Motley Fool Canada.
Fool contributor Andrew Button has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Docebo Inc. and Lightspeed POS Inc.
This Article Was First Published on The Motley Fool
Written By: The Motley Fool
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.