Cybersecurity company CrowdStrike rates IPO
George Kurtz, co-founder and CEO of Crowdstrike, speaks during a global technology conference at Laguna Beach, California, October 17, 2017.
Patrick T. Fallon | Bloomberg | Getty Images
CrowdStrike on Tuesday priced shares in its original $ 34 offer each, over the high end of the series. The company increased $ 612 million before the public market debut.
The cyber security company, which will start trading on Wednesday morning on the Nasdaq under the ticker symbol "CRWD", is expected to price its 1[ads1]8 million A shares between 28 and $ 30 per share. Pricing in the top of the range would have increased more than $ 600 million, according to the CrowdStrike prospect, whose underwriters exercised some options.
CrowdStrike uses cloud-based technology to detect and analyze security breaches. There are several other big tech companies in the public market this year. Uber, Pinterest, PagerDuty, Zoom and Lift have already been published in 2019. The reporting platform company Slack is expected to follow later this month.
In its S-1 filing, Crowdstrike reported a $ 140 million net loss of $ 250 million in Revenue for the year ending January 31. The company also reported subscription relationships with more than 2,500 customers, including Credit Suisse and Amazon Web Services.
CrowdStrike was valued at $ 3 billion in a private round earlier this year. It had 1,455 full-time employees as of 31 January according to the application.
The company's share is divided into A shares – offered for public sale – and B shares. Private limited liability company Warburg Pincus is the largest shareholder in class B tier, with 30% of outstanding class B shares from the time of the offer.
Goldman Sachs, JP Morgan, Bank of America Merrill Lynch and Barclays are the leader underwriters on offer. Underwriters have the opportunity to buy up to 2.7 million more Class A shares at the listed price, according to a statement.
– CNBCs Jordan Novet contributed to this report.
