DIY self-publishing service provider Lulu has set in motion a process which could see the company offering public shares on the Canadian stock market as early as next month.
Last Friday Lulu filed a preliminary prospectus with the regulatory authorities in Canada. The first moves that may see shares in Lulu sold on the stock exchange had been anticipated since early January, with the only surprise being the company’s choice of Canada.
The choice may have been influenced by the fact that Canada’s regulatory authority is not considered to be as heavily stringent and require the levels of open scrutiny demanded by its US counterpart. Company CEO Bob Young does have family connections in Canada and spent a period of time growing up there.
The prospectus filed on Friday does however reveal that Lulu had been making a loss throughout 2009 until the final quarter when it made its first profits of the year. Making a successful initial public offering (IPO) will depend greatly on Lulu attracting strong investors, and ultimately that investment may still come directly from the US, with Lulu still having the opportunity to try a move to the US stock exchange further down the financial road.
The prospectus also revealed that Bob Young will continue to remain a majority stockholder in Lulu following the IPO. Money raised from the IPO will be used to continue to expand Lulu’s marketing development and introduce new products and services to businesses, publishers and authors.