June 4, 2014 / 9:59 PM / 5 years ago

Tablet maker DataWind plans to raise about C$30 million in IPO

TORONTO (Reuters) - DataWind Inc plans to raise about C$30 million ($27.41 million) via an initial public offering on the Toronto Stock Exchange that will value the discount tablet maker at about C$117 million, according to documents filed with regulators on Wednesday.

Mississauga, Ontario-based DataWind has grabbed headlines in recent years as the maker of the world’s cheapest tablet device, UbiSlate that was initially developed as a budget device for the Indian market.

The entry-level version of the device is now being sold for roughly $38 in the United States, Canada and the United Kingdom.

In documents filed with Canadian securities regulators on Wednesday, DataWind said it plans to sell between 5.2 million and 6.3 million shares, at a price of between C$4.75 and C$5.75 a share.

Based on the mid-point of the offering size and price range the IPO is expect to raise about C$30 million, and up to C$34.5 million if the book-runners exercise the over-allotment options on the offering.

If the over-allotment option is exercised in full DataWind will have 22.22 million shares outstanding after completion of the offering, valuing it on paper at roughly C$117 million.

The DataWind IPO comes close on the heels of another tech IPO in Canada, Kinaxis Inc IPO-KINA.TO. The Ottawa-based software company earlier in the week said it plans to raise C$100.6 million via an IPO and a secondary offering.

Although many have predicted a slew of Canadian tech IPOs this year, activity so far has been relatively muted, and many much talked about names in the sector such as Shopify, HootSuite Media and Desire2Learn, have yet to move on an IPO.

Toronto-based Baylin Technologies Inc (BYL.TO), a maker of antennae for mobile devices, was the last technology company to go public on the TSX via an IPO late in 2013 that raised roughly C$50 million.

The DataWind offering is being underwritten by a syndicate led by Canaccord Genuity (CF.TO), as sole lead bookrunner. The syndicate includes National Bank Financial Inc (NA.TO), Cormark Securities and Haywood Securities.

Editing by Lisa Shumaker

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