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Highlights
- Informatica wants to offer its shares on the New York Stock Exchange (NYSE) and trade under the stock symbol 'INFA'.
- Informatica has plans to sell 29 million class A common stocks.
- Informatica IPO could attract investors as pre-IPO shares are often preferred for gains, however, sometimes the shares open lower than the pre-IPO price.
Software development company Informatica Inc. announced terms for its initial public offering as the company is looking to return to the stock market. Nearly six years ago, Informatica was taken private, and it could seek a valuation of up to US$ 9 billion.
As per the documents filed by the company, Informatica has plans to sell 29 million class A common stocks. The underwriting responsibility for the IPO would be taken by J.P. Morgan and Goldman Sachs & Co.
Key details of Informatica IPO
Informatica wants to offer its shares on the New York Stock Exchange (NYSE) and trade under the stock symbol 'INFA'.
The price range of the shares has been kept between US$ 29 to US$ 32 per share and based upon the midpoint range of US$ 30.5 apiece, the company could raise US$ 825.9 million in gross proceeds.
In the Form S-1 Registration Statement filed with the US Securities and Exchange Commission (SEC), Informatica has granted 30 days to the underwriters to purchase up to 4,350,000 shares of the Class A common stock.
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If the option of buying additional shares is exercised, the net proceeds of the initial public offering could exceed up to US$ 951.2 million, after deducting the underwriting discounts and commissions.
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The Redwood City, California-based tech and software company would follow the suit of Freshworks Inc, and Toast Inc as the pre-IPO shares continue to attract heavy demand from investors.
In 2015, the Canada Pension Plan Investment Board and Permira Advisers Ltd had taken Informatica private in a deal valued at around US$ 5.3 billion.
Bottom line
In the second quarter of 2021, the total annual recurring revenue amounted to US$ 1.24 billion and registered a growth of 16 per cent year-over-year (YoY). Meanwhile, the cash and cash equivalents are valued at US$ 408.6 million as of June 30, 2021.
According to the company website, Informatica has more than 5,000 customers and its customers include 84 companies listed on the Fortune 100.
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Informatica supports over 22 trillion cloud transactions per month and provides more than 250 intelligence data services.
