Is Lightspeed POS The Next Shopify?

Lightspeed POS, is a Canada-based startup that provides apps and other services for managing and selling inventory across both online and offline shopfronts. Founded in 2005, the company went public in Canada in 2019, raising CAD $240 million.

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Now, Lightspeed POS has closed its initial public offering in the U.S. at $397.7 million as part of the Montréal-based retail startup’s entrance on the New York Stock Exchange (NYSE). The final close was higher than the originally anticipated $305 million.

The $397.7 million consisted of $332.3 million in gross proceeds to Lightspeed, as well as $65.4 million to selling shareholders. Over 13 million subordinate voting shares of Lightspeed were sold in the transaction. The company will use the net proceeds of the offering to strengthen its financial position and pursue growth strategies.

Lightspeed officially began trading on the NYSE on September 11, listed under the same name (LSPD) also used for the Toronto Stock Exchange (TSX). Lightspeed is now part of a group of Canadian tech companies that have dual listings in Canada and the US. This group includes BlackBerry, Shopify, Mogo, and OpenText.

Both Lightspeed and Shopify offer point-of-sale software and e-commerce tools to retailers that are looking to expand online. Investors may start to look at Lightspeed as the next Shopify and invest accordingly. Comparatively, Shopify stock has surged almost 5,400% from its IPO price of $17 in May 2015. Lightspeed could appeal to investors who didn't invest in Shopify early.

Recently, Lightspeed has also started to expand into new verticals. Earlier this year, the startup partnered with payments giant, Stripe and launched its own payments product and a loan offering for small- to medium-sized businesses.
Nuvei is another recent Canadian tech company to announce it is going public in a string of increasingly high-profile IPOs. This could signal a change in the Canadian tech space. Traditionally the country’s tech firms have stayed in private markets, but now, with Nuvei and Lightspeed drawing international attention, there is sure to be new interest in Canadian tech.