CrowdStrike Raises $612 Million as IPO Tech Rush Continues




 

(Bloomberg) -- Software maker CrowdStrike Holdings Inc. raised $612 million in one of the biggest-ever initial public offerings for a cybersecurity company.

CrowdStrike sold 18 million shares on Tuesday at $34 each, above its already elevated target range, the company said in a statement confirming an earlier report by Bloomberg. The Sunnyvale, California-based company had marketed the shares for $28 to $30, a target range it had earlier raised from $19 to $23.

The offering values the company at more than $6.6 billion based on the shares outstanding as listed in its filings with the U.S. Securities and Exchange Commission. That's more than double the $3 billion valuation last June when it raised about $200 million in a private funding round.

Founded in 2011 by former McAfee Inc. executives, CrowdStrike makes software to protect clients from cyberattacks, including predicting and detecting potential hacks. Its clients include Amazon.com Inc. and HSBC Holdings Plc, according to its filings.

Like many of the crop of tech IPO hopefuls, CrowdStrike is unprofitable. It reported a net loss of $140 million on revenue of $250 million for the year ended Jan. 31, compared with a net loss of $135 million on revenue of $119 million in the same period a year earlier, its filings with the U.S. Securities and Exchange Commission show.

IPO Wave

Uber Technologies Inc.'s $8.1 billion offering is the year's biggest, followed by smaller ride-hailing rival Lyft Inc.'s $2.34 billion IPO as well as the $2.9 billion listing by Avantor Inc., a chemical maker for the life sciences industry. Other tech-related listings this year have included Pinterest Inc. and Zoom Video Communications Inc. So far the results have been mixed for investors: While Lyft has crashed 19% from its offer price, Zoom Video remains the fourth-best performing U.S. IPO of 2019, with its shares up 183%.

Slack Technologies Inc. is set to go public next week in an unusual direct listing. Other tech related companies considering IPOs include Peloton Interactive Inc., Postmates Inc., and WeWork Cos.

CrowdStrike has said that it had raised $200 million in a funding round led by General Atlantic, Accel and IVP that valued the business at more than $3 billion. Alphabet Inc.'s growth equity arm CapitalG also took part in the fundraising. The company has raised more than $450 million since its founding, according to data compiled by Bloomberg.

Because CrowdStrike's Class B stock carry 10 votes per share compared to one each for Class A shares, executives directors and current investors will control about 75% of the voting rights of the company after the IPO, according to the filing.

CrowdStrike's IPO was led by Goldman Sachs Group Inc., JPMorgan Chase & Co., Bank of America Corp. and Barclays Plc. The company's shares are expected to begin trading Wednesday on the Nasdaq Global Select Market under the symbol CRWD.

(Updates with valuation in third paragraph.)

To contact the reporters on this story: Crystal Tse in Hong Kong at ctse44@bloomberg.net;Liana Baker in New York at lbaker75@bloomberg.net

To contact the editors responsible for this story: Elizabeth Fournier at efournier5@bloomberg.net, Michael Hytha

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

COMMENTS

More Related News

Twitter, Facebook Win Appeal in Anticonservative-Bias Suit
Twitter, Facebook Win Appeal in Anticonservative-Bias Suit

(Bloomberg) -- A federal appeals court rejected claims that tech giants Twitter Inc., Facebook Inc., Apple Inc. and Alphabet Inc.'s Google conspired to suppress conservative views online.The U.S. Court of Appeals in Washington on Wednesday affirmed the dismissal of a lawsuit by the nonprofit group Freedom

Bakery Chain Le Pain Quotidien
Bakery Chain Le Pain Quotidien's U.S. Arm Files Bankruptcy

(Bloomberg) -- The U.S. arm of bakery chain Le Pain Quotidien filed for bankruptcy in Delaware with plans to sell itself for $3 million in order to avoid shutting down for good, court papers show.The Chapter 11 petition allows Le Pain Quotidien to address its debt obligations and carry out a planned

Costly Electric Vehicles Confront a Harsh Coronavirus Reality
Costly Electric Vehicles Confront a Harsh Coronavirus Reality

(Bloomberg) -- At a factory near Germany's border with the Czech Republic, Volkswagen AG's ambitious strategy to become the global leader in electric vehicles is coming up against the reality of manufacturing during a pandemic.The Zwickau assembly lines, which produce the soon-to-be released ID.3 electric hatchback, are the centerpiece of a plan by the world's biggest automaker to spend 33 billion euros ($36 billion) by 2024 developing and building EVs. At the site, where an East German automaker built the diminutive Trabant during the Cold War, VW eventually wants to churn out as many as 330,000 cars annually. That would make Zwickau one of Europe's largest electric-car factories-and...

Sanofi to Sell Regeneron Stake Worth About $13 Billion
Sanofi to Sell Regeneron Stake Worth About $13 Billion

(Bloomberg) -- Sanofi is selling a stake in Regeneron Pharmaceuticals Inc. valued at about $13 billion, giving the French drug giant more firepower to invest in fast-growing fields such as cancer.Regeneron has agreed to repurchase $5 billion of its stock from Paris-based Sanofi, the companies said on Monday. Regeneron said that the French company also plans to sell approximately 12.8 million shares, a holding worth more than $7 billion based on Friday's closing price. That will mark the largest public equity offering in the heath-care industry on record.The announcement is part of Sanofi Chief Executive Officer Paul Hudson's revamped strategy. The company said in December that it would...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy