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Real Matters picks bankers, aims for $125-million in IPO

File photo of Jason Smith, president and CEO of Real Matters, is photographed at the company's Markham, Ont. The company is targeting an enterprise valuation of more than $1-billion with the IPO, sources say.

Fred Lum/The Globe and Mail

Real Matters has filled out the underwriting syndicate for its initial public offering, a transaction the mortgage services technology company hopes will raise upward of $125-million.

Sources familiar with the company say Real Matters is aiming to raise at least that much in its IPO on the Toronto Stock Exchange after filing a preliminary prospectus last week that did not specify the intended size of the offering.

The final dollar amount of the offering will depend on pricing of the shares – the company is expected to set out a price range next week – based on demand as well as the amount of stock existing shareholders choose to sell with the offering.

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Shareholders have until Monday to tell the company and its advisers how much stock they wish to sell.

The company is targeting an enterprise valuation of more than $1-billion with the IPO, sources say. That's up from its $650-million valuation when the company raised capital a year ago.

Real Matters, whose two largest shareholders are Altus Group Ltd. and Toronto fund manager Edgepoint Investment Group Inc., has raised $164-million (U.S.) to date in private capital.

The preliminary prospectus revealed that the company's financial advisers BMO Nesbitt Burns (which gets the coveted top-left slot on the deal) and INFOR Financial Group will be joint bookrunners.

The Globe has learned a third bank has been added to that list: Bank of America Merrill Lynch, one of its top customers in the United States, where Real Matters does most of its business.

The three will be joined by co-managers Toronto-Dominion Bank, Bank of Nova Scotia, Wells Fargo & Co. (another big U.S. customer), National Bank of Canada, Canaccord Genuity and Raymond James Financial.

An updated prospectus is expected to be filed with Canadian regulators next week. Marketing to potential investors is expected to start shortly thereafter.

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It will be the first Canadian information technology IPO since Shopify Inc. went public in May, 2015.

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About the Authors

Sean Silcoff joined The Globe and Mail in January, 2012, following an 18-year-career in journalism and communications. He previously worked as a columnist and Montreal correspondent for the National Post and as a staff writer at Canadian Business Magazine, where he was project co-ordinator of the magazine's inaugural Rich 100 list. More

Capital Markets Reporter

Niall McGee joined the Globe and Mail in 2014 as a capital markets reporter. Previously, he spent a decade at Business News Network (BNN) as a reporter and segment producer. In 2016, he won a National Newspaper Award (NNA) in business alongside veteran reporter Jacquie McNish for an investigative series into alleged insider trading at online gambling company Amaya Inc. More

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