hiSense, manufacturer of the Babysense product, which monitors movement and breathing in sleeping babies, is preparing to hold its IPO in Canada. hiSense is owned by Haim Shtalryd and his son, Yaniv Shtalryd.
A-Labs, which helps companies raise private and public capital in cooperation with the Canaccord investment bank and continues helping companies after their offerings, is advising hiSense. "Bankers we meet overseas tell me, 'We also bought Babysense.' It's a groundbreaking product. Until now, hiSense was a small private company that wanted to maintain a certain status. The founder's son is in charge now, and he sees the company's future in its ability to progress and build a large company," A-Labs managing partner and CEO Doron Cohen told "Globes" today.
At this stage, Cohen is giving no details about the IPO, the company value for it, or its timing. hiSense was founded in 1991. According to the company's website, it has a special invention that has been tested and proven as a monitor of babies without contact with their bodies. It detects breathing stoppages and irregularities.
"It's starting to happen, following hard work with serious institutions, including the stock exchange itself, whose 'ambassador' in Israel is Yossi Boker. There are trends in stock exchanges. In the 1990s, technology companies went to the New York Stock Exchange, which didn't want them, and referred them to Nasdaq. 10-15 years ago, it was the London Stock Exchange, which referred them to its secondary exchange, AIM. AIM opened its doors to small companies. In the current decade, the trend is Canada and Australia, which accept young growing companies. In Toronto, the secondary TSXV exchange has assumed the role of quasi-competitor for venture capital funds. Small companies worth C$15-100 million go there and use its infrastructure to run and grow. Both the investors and the companies benefit," Cohen says.
"The Else IPO was oversubscribed by 2.5, and the share price ended the first week of trading up 200%. The Beyond Meat IPO is also providing support."
A-Labs will also benefit for the increase in the share price, because the process includes greenshoe options for Else. "Our business model is to also get options in order to benefit from the upside. We're looking for companies with a future. Money is nice, but options can turn $0.25 into $25," Cohen remarks.