Tech IPO momentum building

How many datapoints does a trend make? With the launch of Sandvine, Redline and Redknee, it sounds as though the local ECM desks have determined that the buyside is interested in more small cap tech IPO product.

We are hearing that Terago is next up, and unlike Dragonwave, Terago is looking to do a TSX-only listing. While Sandvine et al went to that Bazaar known as the AIM market first, Constellation (CSU:TSX) was the last tech firm that tapped the local market at the outset.

Equally interesting to some will be the fact that this may well be the first IPO that’s going to be co-led by alleged arch rivals CIBC World Markets and Genuity Capital Markets (Genuity was founded by several former CIBC i-bankers). Terago’s current shareholders will no doubt benefit as each sales desk invariably tries to “out do” the other.

Best of luck to Gerry O. and the Terago team on this next leg of the journey.

MRM