Canadian media company Stingray unveils IPO plans

Fri Apr 24, 2015 6:55pm EDT
 
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By Euan Rocha and Allison Lampert

TORONTO/MONTREAL, April 24 (Reuters) - Stingray Digital Group, a business-to-business music provider and media company, said on Friday it plans to go public through a listing on the Toronto Stock Exchange.

A source familiar with the company's plans, who asked not to be named as the details of the offering are not yet public, said Stingray plans to raise C$120 million ($99 million) via the IPO that is expected to close sometime in early June.

Another source close to the process said the company will raise C$67 million from the IPO, while the remaining C$53 million will go to the major shareholders, who will be selling a portion of their stakes.

The company, which broadcasts music and video content on a number of platforms from television and radio to the Internet, said it generated earnings before interest, taxes, depreciation and amortization of C$27.1 million on revenue of C$71 million in its fiscal year ended March 31, 2015.

Montreal-based Stingray, founded in 2007, is headed by Eric Boyko, who owns a 23.35 percent stake in the company. Quebec private equity firm Novacap owns a 29.44 percent stake, with media and tech holding company Telesystem owning a 42.11 percent interest.

Novacap, Telesystem and Boyko were not immediately reachable for comment.

The share offering is being run by National Bank Financial , GMP Securities, BMO Nesbitt Burns, CIBC World Markets, and TD Securities.

The company's music is broadcast through a number of telecom and cable companies across the globe including Verizon, Comcast, AT&T, Bell, Rogers and Telus in North America, along with rivals like Sky, Ziggo, and Zap in other parts of the world.   Continued...