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Real Matters seeks USD 125mn IPO: Globe and Mail
Posted on Friday, 21 April 2017 10:28
Real Matters is in the process of updating paperwork for an initial public offering with a view to filing the amended prospectus with Canadian regulators next week ahead of marketing, Globe and Mail reported.

Sources told the newspaper the Ontario-based mortgage and insurance network management platform operator is aiming to raise at least CAD 125.00 million (USD 106.21 million) for an enterprise value of more than CAD 1.00 billion.

The technology company has also added to the original slate of underwriters specified in the prospectus lodged with regulators last week, which at the time did not specify the size of the offering or the selling shareholders.

Bank of America Merrill Lynch, one of Real Matters main customers in the US, is joining BMO Nesbitt Burns and Infor Financial as a joint bookrunner, Globe and Mail reported.

Furthermore, the data company has hired Toronto-Dominion Bank, Bank of Nova Scotia, Wells Fargo (another US client), National Bank of Canada, Canaccord Genuity and Raymond James Financial as co-managers.

The newspaper noted selling shareholders – comprising Altus Group and EdgePoint Investment according to the prospectus - have until 24th April to decide how many stocks they want to hand over in the IPO.

Real Matters is a provider of network management services for the mortgage lending and insurance industries through different brands focused on separate market segments in the US and Canada.

The company operates in the residential sector in the two countries via Solidifi and Linear and in domestic property and casualty through iv3.

According to the prospectus, Real Matters estimates the total annual market spend for services offered by the company at roughly USD 6.00 billion in 2016 and notes there is significant room for growth.

It intends to use proceeds from the listing to pay down debt, increase its residential mortgage appraisal market share, pursue acquisitions, finance investments and technology and for working capital.

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