Hootsuite is gearing up for an initial public offering (IPO) with a target of raising (dollar)158 million after a string of setbacks.

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Hootsuite is preparing for an initial public offering (IPO) with a goal of raising (dollar)158 million after a string of setbacks.

(Photo courtesy of Unsplash user Nataliya Vaitkevich) Hootsuite Prepares for IPO After Delays

After being delayed, Hootsuite is now gearing up for its IPO.

From the IPO funding round, the Vancouver-based social startup hopes to raise (dollar)200 million CAD, or nearly (dollar)158 million USD.

Hootsuite Is Considering Going Public

According to BetaKit, Hootsuite was planning an initial public offering (IPO) before Christmas.

The plan was for the company to raise (dollar)158 million USD to help fund its aggressive entry into the social commercial space.

According to sources familiar with Hootsuite’s operations, it is highly unlikely that the company will meet its original deadline.

According to one source, the “window” for new Canadian tech IPOs has closed.

IPO Results in the Tech Industry

According to the Globe and Mail, the average return on some tech sector IPOs over the last year was minus 2.4 percent, compared to the stock market’s average of 16 percent.

D2L, an Ed-Tech company based in Kitchener-Waterloo, was one of the more troubled IPOs in recent months, closing around (dollar)50 million lower than expected.

Dani Lipkin, director of global business development for the TMX Group (owner of the TSX Venture Exchanges and the TSX), said that the period leading up to the holidays is when there aren’t many people around.

Going public around the last week of December could be “a little more unusual,” according to Lipkin.

Lipkin Discusses Going Public.

Lipkin clarified that this does not mean that nothing will get done, but rather that an IPO “during the last week or two of the year” would be unusual. Lipkin also stated that if there is a company that they want to meet and invest in, they will do so via their laptop, phone, or iPad, regardless of where they are.

Lipkin also praised the current flurry of IPOs, describing it as “the greatest tech period in Canada’s history,” but cautioned that judging a company’s performance days or weeks after its IPO isn’t a fair comparison.

With this, he stated that going public is only one step in the company’s journey, and that the company’s success is the most important factor.

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