Lightspeed filed its highly anticipated initial public offering (IPO) earlier this month. The Montreal-based point-of-sale (POS) software company started in founder Dax Dasilva’s Montreal apartment in 2005; it now has 700 employees in seven countries. When it lists its shares on the Toronto Stock Exchange (TSX) under the ticker LSPD, it will join the slim ranks of Canadian publicly-traded SaaS technology companies like Kinaxis, Shopify, and Enghouse.
The Bank of Montreal, National Bank Financial and JPMorgan Chase & Co. are underwriting the share sale, which is expected to raise about $200 million, according to reports.
The Logic analyzed Lightspeed’s 211-page prospectus and spoke to several stock analysts, venture capitalists and industry experts to assess some of the lesser-known details of the tech IPO.
Our analysis shows that despite its fast-growing operation and ambitious expansion plans, a number of factors could hurt the firm’s prospects on the public markets, including a limited patent portfolio, a pending lawsuit, a sole-sourced key feature and a share structure that institutional investors typically oppose.