There has been a flurry of IPOs after the pandemic-led crash last year. Well, what could be a better time for fundraisers when the liquidity is overflowing? According to CPE Analytics, 88 companies completed their IPOs during the first half of 2021. So, while TSX stocks at large have been rallying almost incessantly since last year, here are three IPOs that doubled in 2021.
Magnet Forensics
First up is Magnet Forensics (TSX: MAGT). A Waterloo-based software company priced its IPO at $17 per share, which began trading on the TSX in April this year. The stock has been unstoppable since then and is currently trading at $53.
Magnet Forensic provides a suite of software built with tools to investigate cyberattacks and digital crimes. It sells the software to private and public investigating agencies and currently operates in 94 countries. Its software allows the recovery of deleted files from computers, smartphones, and the cloud and promotes faster investigation.
As digital connectivity has exponentially increased in the last few years, the risk of cyberattacks and managing data has increased. As a result, the industry experts expect the value of the global cybersecurity market at US$270 billion by 2026, representing an 8% CAGR.
Magnet Forensics is currently valued at $1.9 billion and reported total revenues of $59 million in the last 12 months. Interestingly, it could see remarkable revenue growth in the next few years, as it expands its customer base and geographical presence.
Nuvei
Canada’s fast-growing fintech stock Nuvei (TSX: NVEI) has soared a massive 230% since its TSX debut last September. Driven by strategic acquisitions and handsome quarterly performance, the Canadian payment processor has seen vertical growth this year.
Payment platforms were already one of the fastest-growing areas in the market. But higher spending on e-commerce during the pandemic gave the sector a strong push since last year. Along with conventional payment gateways, Nuvei also provides payment technology for gambling and sports betting platforms. It supports 480 payment methods and 150 currencies across 204 global markets.
Nuvei reported revenues of US$328 million in the first six months of 2021, more than doubling against the same period last year. It posted US$65 million in profits in the first half of 2021 against a loss in 2020. A growing cryptocurrency ecosystem and regulated online gaming could significantly contribute to Nuvei’s top line in the next few years.
Payfare
Payfare (TSX: PAY) is another Canadian fintech stock that has been on a roll this year. Debuting in March 2021, it has doubled in fewer than six months and is currently trading at $11.3.
Payfare is a fintech company that offers instant payment and digital banking solutions, particularly for gig workers. At the end of Q2 2021, the total active user count was 262,567, representing a sequential increase of 79%. Uber, Lyft, DoorDash are some of its well-known clients.
Payfare reported total revenues of $8.7 million in the second quarter of 2021. It represents a 73% increase compared to Q1 2021 and a handsome 263% increase year over year. As the gig economy continues to expand, Payfare could see its user count surge, ultimately boosting its top line.
