Cybersecurity Firm CrowdStrike Soars in Wall Street Debut
June 12 2019 - 12:50PM
Dow Jones News
By Alexander Davis
Shares of cybersecurity specialist CrowdStrike Holdings Inc.
leapt more than 80% above their initial public offering price in
their Wall Street debut, demonstrating investors' continuing
appetite for Silicon Valley business software firms.
CrowdStrike shares changed hands at $63.50 apiece in initial
trading Wednesday morning on the Nasdaq exchange. Sunnyvale,
Calif.-based CrowdStrike had priced its shares at $34 apiece, well
above its expected range of $28 to $30.
The gains give CrowdStrike, led by co-founder and chief
executive George Kurtz, a market value of roughly $12.7 billion.
Last year it was valued at $3 billion by private investors. The
company previously raised about $481 million from venture firms
including Accel, IVP, Alphabet Inc.'s CapitalG and Warburg Pincus,
according to PitchBook Data Inc.
The largest pre-IPO shareholders were Warburg Pincus, with 30.2%
of shares, Accel with 20.2% and CapitalG with 11.1%.
CrowdStrike's debut comes amid a resurgent IPO market, following
high-profile venture-backed tech debuts, including those of Uber
Technologies Inc., Lyft Inc. and Pinterest Inc.
Although several consumer-tech offerings have struggled on Wall
Street, a number of business software companies such as Zoom Video
Communications Inc. and PagerDuty Inc. have seen their stocks
perform well after their IPOs.
CrowdStrike is expanding briskly but continues to lose money. It
said in its prospectus it generated $219.4 million in revenue for
the 12-month period ending Jan. 31, more than double the $92.5
million in the year-ago period. The company's net loss for that
time frame widened slightly to $140.1 million from $135.5
million.
Write to Alexander Davis at alec.davis@wsj.com
(END) Dow Jones Newswires
June 12, 2019 12:35 ET (16:35 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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