Update: Darktrace shares surged 40% above the offer price on the opening morning of trading, above 350 pence per share
Cybersecurity giant Darktrace has priced its stock market flotation at 拢1.7 billion.听
The offer price of 250 pence per share is significantly below initial forecasts which would have given it a market capitalisation of 拢2.5-3bn.听
After food delivery disrupter Deliveroo dropped a quarter of its value on its first day of trading following a disastrous IPO, the cautious pricing may be due to Darktrace’s desire to see a successful after-market performance for its shares.
Darktrace has opted against issuing dual-class shares, unlike Deliveroo founder Will Shu, whose decision to give himself 20-times the voting rights of other听shareholders was widely criticised.听
It has not been a straightforward road to its planned launch on the main market of the LSE.听UBS resigned听as one of听its main IPO听sponsors, with reports claiming that this was due to the role of billionaire tech entrepreneur听Mike Lynch, who is battling extradition to the US, in the company.听听
Lynch听became听the听first shareholder in Darktrace听through his investment company听Invoke Capital,听which听remains Darktrace’s biggest shareholder.听However,听Lynch听no longer听has听any听direct involvement with the running of the company听and听stepped down from the Darktrace board in 2018.听听听
The float is for only 10% of the company, with existing shareholders expected to cash in around 拢21m worth of shares.
Darktrace鈥檚听self-learning security technology defends more than听4,500 organisations worldwide by听autonomously detecting, investigating and responding to threats from insiders, remote working, ransomware, data loss and supply chain vulnerabilities.听听听
The firm, which has 1,500 employees and 44 office locations, recently appointed former BT CEO听Sir Peter Bonfield CBE听and听Lord Willetts, the former science minister,听to its board, as well as听appointing听 new听chairman in听Gordon Hurst, who also chairs听Featurespace.听听
It also dropped co-CEO听Nicole Eagan, who is based in the US, to the position of head of strategy, with听Poppy Gustafsson听now its sole chief executive ahead of听the听planned听float.听听
Gustafsson,听a former Autonomy colleague of听founder听Lynch and now an adviser to Boris Johnson, will still come out of the process millions of pounds richer.听
“This milestone marks an exciting day for Darktrace. This business is one built by collaboration,鈥� she said.听
鈥淥ur company is deeply rooted in the UK’s tradition of scientific and mathematic听research听so we are especially proud to be listing on the London Stock Exchange.听听
鈥淭o our world-class inventors at our R&D centre in Cambridge, today is really about celebrating you. Not only have you created a fundamental technology that 4,700 organizations now rely on to help them tackle novel and advanced cyber-threats, but you remain committed to innovation, pushing the envelope and shaping the world with your ideas.听听
鈥淭oday is just the beginning.”听
From fiscal year 2018 to fiscal year 2020 the听group’s revenue has grown from $79.4m to $199.1m. Adjusted EBITDA has improved from a $27m loss to a $9m profit over the same period.听