Q4 Inc (TSX:QFOR) began trading on the Toronto Stock Exchange (TSX) Monday under the symbol ‘QFOR’, after raising C$100 million in an initial public offering (IPO).
Q4, an investor relations software provider, issued 8,334,000 common shares at a price of C$12 per share, raising $50 million less than the target the company set on October 7, when it announced plans to price its shares between C$14 and $17.50, the Globe and Mail reported.
“Going public and raising over $100 million in fresh capital gives us the ability to accelerate our execution and deliver on our vision of connecting corporate issuers, investment banks and investors across all of their most critical workflows,” Q4 CEO Darrell Heaps said in a statement.
Q4’s decision to reduce its IPO target came after the company experienced lower than anticipated demand from investors, according to Canadian start-up news site BetaKit.
The company said it plans to use the IPO proceeds to repay debts related to its credit facilities, which total C$25.8 million, and pursue growth strategies that include expanding its customer base through investments in sales and marketing, channel partnerships, and product development.
Q4 also revealed plans to focus some of its efforts on mergers and acquisitions (M&A), which it expects to be a key driver of its growth, according to its public offering prospectus.
Founded in 2006, Q4 provides investor relations and capital markets solutions that reach across websites, virtual events, corporate access, data and analytics, customer relationship management (CRM), and capital markets intelligence.
The company’s software platform is used by about 2,400 public company clients, including over half of the S&P 500’s constituent companies, and more than 12 million investor users per month. Q4’s customer base includes Netflix, Visa (NYSE:V), McDonald’s, Walmart, Square, Shopify (TSX:SH., NYSE:SHOP), and Nike.