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Cloudflare boosts price range
Posted on Wednesday, 11 September 2019 13:50
US-based cybersecurity firm Cloudflare is aiming to raise as much as USD 563.50 million in its initial public offering (IPO) after increasing the price range from USD 10.00 to USD 12.00 apiece to USD 12.00 to USD 14.00 each.
The Californian company, best known for speeding up content delivery online while protecting websites against hackers, is selling 35.00 million stocks in its New York Stock Exchange debut.
It has provided its 12 underwriters, which are led by Goldman Sachs, Morgan Stanley and JPMorgan, with an overallotment option for a further 5.25 million shares.
Cloudflare could have a market capitalisation of as high as USD 4.18 billion on admission, based on the offering and exercised green shoe being priced at the top end of the price range.
The principal purposes of this float are to increase the group’s value and financial flexibility and gain access to the equity markets.
However, proceeds will be useful in supporting general corporate activities, including working capital, operating expenses, and expenditures.
Additionally, a portion of the money raised may bankroll the acquisition of businesses, products, services, or technologies, though no such agreements or commitments are in place at this time.
Cloudflare has built a global cloud platform that delivers a broad range of network services to businesses of all sizes around the world.
The group’s product improves the performance of its customers’ applications and eliminates the cost and complexity of managing and integrating individual network hardware.
It provides clients with a scalable, easy-to-use, unified control plane to deliver security across their on-premise, hybrid, cloud, and software-as-a-service applications.
Cloudflare had revenue of USD 129.15 million in the first six months of 2019, compared to USD 87.11 million in H1 2018.
Net losses widened over the timeframe to USD 36.82 million from USD 32.49 million.
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