TSX:DCBO - Post Discussion
Post by
retiredcf on Dec 09, 2020 8:43am
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Docebo Inc.
(DCBO-T, DCBO-Q) C$65.92 | US$51.03
Resuming Coverage Following the IPO in the U.S. Event
We are resuming coverage following the initial public offering in the U.S. Docebo issued ~3.5mm shares from treasury for gross proceeds of US$165.6mm.
Impact: NEUTRAL
Docebo completes its IPO in the U.S. Docebo has completed its U.S. listing on the Nasdaq and started trading under the ticker "DCBO" on December 3. The U.S. listing should increase the company's exposure to U.S.-based investors and bolster the balance sheet for organic growth investments and acquisitions. Docebo has completed a treasury offering of ~3.5mm shares, which includes ~0.450mm shares due to the fully exercised over-allotment option, at US$48.00 per share. We note that the members of the management team and other major shareholders (Intercap and Klass) did not participate in the equity offering. We estimate that Docebo's share count increases by ~12% to ~32.6mm shares following the offering. We also estimate that the pro forma float is ~11.1mm, up from ~7.6mm, which should improve the stock's liquidity.
Bolsters balance sheet to accelerate growth. We estimate that Docebo will have ~$212mm of net cash at the end of Q4/F20. We believe that the proceeds will provide Docebo with the financial flexibility to accelerate its growth initiatives. In order to support the robust pipeline of opportunities, we expect the company to accelerate hiring across S&M and R&D teams in 2021. We do not believe that the equity offering signals any imminent acquisitions.
TD Investment Conclusion
We are maintaining our BUY rating and increasing our target price to C$77.00. We believe that Docebo has the balance sheet to continue accelerating its ARR growth and win large customers amidst a positive backdrop
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