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Datadog sets price range on IPO
Posted on Monday, 09 September 2019 14:06
Datadog could raise as much as USD 607.20 million in its initial public offering (IPO) on Nasdaq after setting a price range of USD 19.00 to USD 22.00 apiece.
The New York-headquartered provider of cloud application monitoring services to developers and information technology departments is selling 24.00 million shares, which could fetch up to USD 572.00 million.
It has provided underwriters, which include Morgan Stanley, Goldman Sachs, JPMorgan and Credit Suisse, among others, with an overallotment option for a further 3.60 million scrips.
The IPO will result in a dual-class structure where each class B stock equates to ten votes and is convertible at any time into one class A share.
Datadog said it is mainly using the listing to increase its capitalisation and financial flexibility while creating a public market for its class A stock.
However, money raised will support general corporate activities, such as working capital, operating expenses and capital spending.
Proceeds may also bankroll the purchase of complementary businesses, products, services or technologies, though the group cautioned it does not have agreements or commitments in place for any acquisitions at this time.
Datadog has a software-as-a-service platform that integrates and automates infrastructure and application performance monitoring and log management to provide a unified, real-time view of its customers’ technology stack.
The group’s software is used to carry out digital transformation and cloud migration and drive collaboration among development, operations and business teams.
Datadog had revenue of USD 198.08 million in the 12 months to 31st December 2018 and USD 153.27 million in H1 2019.
The group incurred a net loss of USD 10.76 million and USD 13.44 million in FY 2018 and H1 2019, respectively, compared to a loss of USD 2.57 million in FY 2017 and a profit of USD 0.50 million in H1 2018.
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