VANCOUVER — E Automotive, a Toronto-based digital car-auction platform, has filed to trade on the Toronto Stock Exchange as it hopes to take advantage of a slow-to-digitize wholesale automotive market and grow south of the border.

In a preliminary prospectus filed Monday, the company, which will trade under the symbol EINC, did not disclose how much money it plans to raise in the initial public offering or the price per share. The lead underwriters are Canaccord Genuity, CIBC World Markets and National Bank Financial, with Scotia Capital, Eight Capital, ATB Capital Markets and Laurentian Bank Securities also underwriting the offering.

“Our mission is to relentlessly optimize the online vehicle-buying, -selling and -management experience for automotive dealers and consumers,” wrote CEO Jason McClenahan in a letter to shareholders included in the prospectus. A former auctioneer with more than 17 years experience in the automotive industry, McClenahan wrote that he joined E Automotive four years ago “based on my belief that digital vehicle auctions would fundamentally disrupt traditional physical vehicle auctions.”

The company did not immediately respond to a request for comment.

It is the latest in a burst of Canadian tech IPO filings since the start of the fourth quarter. Montreal-based advertising exchange technology firm Sharethrough filed to trade under the symbol STRX in early October, followed by Kitchener, Ont.’s D2L, a cloud-based software platform for in-person and online courses. D2L revealed Monday it is looking to raise about $230 million, which would give it a market capitalization of more than $1.1 billion. Meanwhile, Toronto-based Q4 filed to restart its IPO plans after shelving them this summer. It is looking to raise $150 million. Vancouver’s Copperleaf, the first firm to start trading after a pause to the frenzied activity earlier this year, saw its shares surge in its market debut. They’ve since stayed above their $15 offering price, though have fallen off the early highs.

The wholesale vehicle auctions E Automotive facilitates have historically taken place in person. Auto dealers started turning to online options as a cheaper alternative as they operate on increasingly thin margins. The COVID-19 pandemic accelerated the digital adoption that had already begun, the prospectus claims.

E Automotive gives auto dealerships access to its platform—known as EBlock—where they can buy or sell vehicles to other dealers. Its online auctions happen in real time, allowing buyers to bid by the minute, or in a more passive, timed format that can run for one hour or longer. Its software also helps with advertising, pricing, transferring titles and other logistics. Clients pay recurring subscription fees.

The company sees the data it has been able to gather as part of its competitive advantage. “Our growing repository of data enables transparent, comprehensive, and accurate vehicle information that our customers can trust, powering more efficient and frictionless vehicle transactions on our marketplace,” its filing reads. It has collected “a significant amount” of data on dealers, transactions and vehicles.

It has reported net losses for its past three financial years. In its most recent year, ending Dec. 31, 2020, it reported a roughly US$6.7-million net loss with about US$30.3 million in revenue. In the three months ending June 30, 2021, the company reported a nearly US$3.8-million net loss with US$20.7 million in revenue.

E Automotive spent 2020 growing its Canadian operations and now has “an established user base” across much of the country and experience centres in most major provinces, the prospectus states. The company plans to use funds from the IPO, in part, to grow further in the U.S. over the next two years, both organically and via acquisitions. “We expect to continue our rapid trajectory of growth through a nationwide expansion across the U.S. and by introducing new products and solutions that will further expand wallet share,” reads McClenahan’s letter.

The fragmented U.S. market has thousands of franchised and independent dealers, as well as hundreds of wholesale auction providers. The company opened a U.S. head office in Burlington, Vt., in 2019, where it has 35 employees, and another 200 throughout the U.S., according to the prospectus.

The company completed three strategic acquisitions over the last 12 months. In January, it acquired Digital Auctions for about US$8 million. In August, it acquired ESP and TradeHelper, both auction providers that serve Quebec, for about US$25.8 million, with a possible additional payout of US$3.2 million. In the fourth quarter of this year, it expects to close its acquisition of Rolo Trucking, a Canadian company operating a trailer fleet that moves vehicles. “We look for acquisitions that allow us to expand into new markets and accelerate user growth, expand our offerings and capabilities, augment existing technologies and provide other strategic benefits.”

E Automotive is also exploring new products including auto-finance solutions. It plans to promote ancillary services starting in 2023 as it launches new, complementary products including digital marketing to consumers, according to the prospectus. “Our vision is to create the first end-to-end platform that serves the entire dealer value chain.”