Docebo Inc. (DCBO) – The Odd Lot Special Situation
The Checklist Compounder is primarily built to find Canadian microcaps that can compound for 10+ years. That is the main course.
However, in the pursuit of high returns, we cannot ignore the “free lunches” that the market occasionally serves up. To truly maximize performance over the long run, I use a small portion of my portfolio (often idle cash) to execute “Return Boosters.”
These are low-risk, high-probability special situations—specifically Odd Lot Tender Offers—popularized by Joel Greenblatt in You Can Be A Stock Market Genius. These small 4-7% wins might not look like much in isolation, but when you stack them on top of a core portfolio year after year, the compounding effect is massive.
A perfect setup just hit the market: Docebo Inc. (DCBO).
The Setup: Why This Works
Docebo has announced a Substantial Issuer Bid (SIB) to buy back shares at a fixed price of US$20.40.
Usually, these buybacks are “pro-rated,” meaning if too many people sell, the company only buys a fraction of your shares. But to save on admin costs, Docebo included an Odd Lot Provision.
The Rule: If you own fewer than 100 shares (i.e., 99 shares), you are exempt from proration.
The Edge: While billion-dollar funds are fighting for allocation, the company is legally committed to buying 100% of your small position at the premium price.
The Math (USD Execution)
To maximize the spread and avoid currency friction, I am executing this trade in USD (using a TFSA at Interactive Brokers).
The Exit Price: US$20.40 (Fixed Offer)
The Buy Price: ~US$19.04 (Current Market)
The Volatility Bonus: The stock has been volatile, wicking down as low as US$18.69 intraday. If you set aggressive limit orders, you can widen the spread even further.
The Payoff (99 Shares at US$19.04):
Total Cost: $1,884.96 USD
Total Cash Out: $2,019.60 USD
Net Profit: $134.64 USD
Return on Capital: ~7.1% (in approx. 40 days)
CAD Equivalent: ~$184 CAD (at 1.365 exchange rate)
The Execution Protocol
To capture this yield, you must follow the timeline strictly:
Buy: Purchase exactly 99 shares of Docebo (DCBO) on the Nasdaq immediately. (Do not buy 100, or you lose the exemption).
Tender: Watch your brokerage account for a “Voluntary Corporate Action” notice. Submit instructions to “Tender” all shares.
Collect: The offer expires on March 10, 2026. Cash is typically disbursed ~35 days later.
This isn’t a “multibagger” play; it is a surgical cash management maneuver. We take the easy 7%, bank it, and rotate that capital back into our high-conviction microcaps.
Disclaimer: I am not a financial advisor. This post is for educational purposes only. I may hold positions in the securities mentioned. All issuer bids are subject to the terms in the formal circular on SEDAR+.
Great trade Lavel …bought in at 16.40 and tendered for 20.40 ..25% return in under than 3 weeks…thanks for the tip
Cheers
Great post. Any idea if this can be taken advantage of across multiple account types - say, 99 shares in TFSA, 99 in RRSP, same account holder, all under one brokerage. Would that be possible or would it take you out of exempt status for the odd lot provision?