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Hootsuite IPO: Will It Happen in 2023?

August 16, 2023 10:54 pm
Published by: Benjamin Baxter

Hootsuite is a thriving social media management solution for creating content and streamlining business online. With over 18 million users worldwide, the tech startup appeared on Forbes Cloud 100 twice.

Let’s see if the Hootsuite IPO will finally come to fruition this year.

Hootsuite IPO

The public market’s underwhelming reception toward the tech sector soured the outlook for the Hootsuite IPO prediction. Initially, the Vancouver-based startup had planned to list on the Toronto Stock Exchange before Christmas of 2021.

Earlier reports suggested the average return for tech IPOs had been a dismal -2.4% over the past year. In contrast, the average for the broader stock market stood at 16%. Hootsuite wasn’t ready to take the risk.

A post-IPO decline isn’t likely to hurt the value of fresh capital. However, the more pressing concern for Hootsuite was withdrawing the IPO due to waning investor interest.

Hootsuite had been working with JP Morgan and TD Bank toward a public listing for several months. It had also upgraded its board to prepare for the IPO.

When Is the Hootsuite IPO Date?

Hootsuite first intended to go public in 2021. But as market conditions and its finances worsened, the company had no choice but to put off the IPO.

Fast forward two years, and there’s still no definite date for the Hootsuite IPO. If that’s any indication, it seems Hootsuite is in no rush to make the company public.

What Is the Hootsuite IPO Share Price?

Since the Hootsuite IPO listing has been on hold, a specific share price will only be available once the public float happens.

How Much Is Hootsuite Valuation?

Hootsuite’s valuation dropped from C$1 billion to C$690 million between 2014 and 2018. No further information about its valuation or market cap emerged afterwards.

In 2013, investors injected $165 million into the business. Part of the capital infusion went directly to existing investors—instead of the company’s purse—to gain partial liquidity via secondary transactions.

This strategy allowed Hootsuite executives to cash in on their company shares. It wasn’t the first time the tech firm had gone this route.

In May 2012, OMERS Ventures, an arm of the Ontario Municipal Retirement System, acquired a C$20 million stake in Hootsuite through a secondary transaction.

Hootsuite then established a single venture fund in 2017 and raised C$5 million. In 2018, it secured C$50.2 million through debt financing. Overall, the social media company amassed C$299.9 million across six funding rounds.

Should You Invest in Hootsuite Stock?

In January 2023, Hootsuite let go of 7% of its employees, marking its third wave of job layoffs in under a year. The tech firm also downsized its workforce by 30% in August 2022 and another 5% in November 2022.

Hootsuite was actively seeking buyers in 2019. However, it couldn’t close a deal because its valuation couldn’t get past $700 million (USD). Shortly after, Hootsuite slashed its labour pool by 10%.

Considering these factors, investors should think twice before making a move on Hootsuite. And since no target date is in sight for the IPO, it won’t hurt to wait and see for further developments.

Can You Buy Hootsuite Shares Now?

A sure way to get Pre-IPO shares is through employee stock options, you can find a seller yourself or go through a private equity brokerage to source Pre-IPO stock.

The first step is getting your name down and registering your interest in Pre-IPOs/IPOs, you can specify what companies are of interest to you and be kept informed of upcoming allocations.

Register your interest in IPOs here.

Conclusion

Marked by delays and internal restructurings, the future of the Hootsuite IPO remains uncertain. It would be best for the tech platform to wait for a more stable outlook before going public.

But as the financial climate continues to shift, you should keep a close eye on Hootsuite for investment opportunities.

The information in this article is well-researched and factual. Still, it contains opinions also, and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article; we are not financial advisors. We are journalists. You should always consult with a professional before making any investment decisions. We hold no stock or interests in any of the Companies discussed on this website/app.

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