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Medallia prices IPO
Posted on Tuesday, 09 July 2019 13:06
Medallia has set a price range on an upcoming initial public offering (IPOs) that would value the US software-as-a-service customer experience management company at as much as USD 2.22 billion if the overallotment is exercised.

The Californian enterprise feedback tool developer is selling 13.33 million shares at USD 16.00 to USD 18.00 apiece while existing investors are taking money off the table by offloading1.18 million scrips.

Current backer Sequoia, via a fund, has indicated an interest in taking part in a private placement equal to as much as 4.0 per cent of the securities being offering in the listing.

Bank of America Merrill Lynch, Citigroup and Wells Fargo Securities, among others, are handling the float that could potentially fetch up to USD 300.15 million.

Medallia has developed a platform that captures experience data from massive and expanding signal fields emitted by customers and employees on their daily journeys.

The group uses artificial intelligence to analyse these interactions in order to derive personalised and predictive insights, which help enterprises reduce churn and persuade consumers to become buyers.

Based on industry data and an analysis of sales to existing customers, Medallia has estimated the total addressable market for its experience management platform at about USD 68.00 billion in 2019.

In the three months to 30th April, Medallia generated total revenue of USD 93.62 million, up from USD 70.67 million in Q1 2018.

The business narrowed net losses of USD 27.53 million in Q1 2018 to USD 2.56 million and, as at 30th April 2019, had an accumulated deficit of USD 371.20 million.

Zephyr, the M&A database published by Bureau van Dijk, shows 96 IPOs targeting US-based companies have been announced so far this calendar year.

These listings include Uber, Avantor, Lyft, Pinterest, Tradeweb Markets and Chewy, all of which raised more than USD 1,000 million.

© Zephus Ltd