Cloudera Inc. is going public soon and according to a filing on Monday, the company is to offer 15 million shares at $12 to $14 each. This effectively means that the company is looking to raise as much as $210 million through the IPO.
The big-data company has always been in the red ever since it started operations in 2008 and despite this it continue to garner backing from top technology giants including Intel. Cloudera’s IPO is a chance for people to invest at a significant discount to the $4.1 billion valuation the company was awarded in its last private funding round. At the high end of the marketed share price range, Cloudera would have a market value of $1.8 billion based on the 128 million shares to be outstanding after the offering.
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According to the filing, Cloudera intends to use the proceeds from the IPO to provide working capital, fund potential acquisitions and for other corporate purposes. Cloudera is looking to use 1 per cent of the proceeds to fund the Cloudera Foundation, a California non-profit corporation formed to carry out charitable activities. The company will list its shares on the New York Stock Exchange under the symbol CLDR.
Cloudera managed to reduce its losses for the year ended January 31 from $203.1 million the previous year to $187.3 million. Revenue for the same period climbed 57 per cent to $261 million.
As far as the year 2017 and IPOs go, two unprofitable software companies have sold shares in the US in 2017 — MuleSoft Inc. and Alteryx Inc. Both are trading well above their IPO, after pricing shares at or above the high end of marketed ranges. After a quiet 2016 for technology listings, valuations are now richer in the public markets and more companies are taking their chances. Outside of enterprise technology, Snap Inc.’s $3.9 billion IPO also showed the demand to bet on what may be the next big consumer technology company.