Succumbing to the recent market downcurve, B2B Trust, a wholly-owned subsidiary of Laurentian Bank of Canada, has scratched its plans to go public,at least for now.
Toronto-based B2B Trust provides Internet-based banking and investment services to insurance brokers, mutual fund dealers, deposit brokers and other financial advisers, as well as to retailers and manufacturers, which in turn market the products to their customers under their own brands.
The proposed IPO was expected to raise slightly more than $US38 million, a portion of which would have been used to pay a dividend of almost $US28 million to Laurentian Bank, which created and financed the technology through which B2B Trust delivers its products.
Bernard Piche, co-chief operating officer and chief financial officer at B2B Trust, said the company sees "no impact" of the deferred IPO on its strategy. "The company has all the working capital it needs to move forward with its current plan and activities. We can continue to grow the business by introducing new products and seeking new clients."
B2B Trust provides its clients with checking accounts, lines of credit, debit and credit cards, bill payment and ATM access. On the investment front, it offers self-directed registered retirement savings plans, mortgage loans and mutual fund transactions.