Lacework IPO or direct listing? All you must know

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Lacework IPO or direct listing? All you must know

Lacework IPO
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Highlights

  • In the last funding round, Lacework had achieved a valuation of US$ 8.3 billion.
  • Lacework was founded in 2015 and continues to remain private.
  • Lacework has emerged as one of the leaders in the cloud computing industry, and it provides security tools to several customers.

Ever since it raised US$ 1.3 billion in a funding round held last year, stock market enthusiasts have been looking for the initial public offering (IPO) plans of Lacework, an American cloud security service provider.

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On Friday, it appeared that potential investors were looking for the Lacework IPO plan. However, whether the cloud security service company would take the traditional IPO route or opt for a direct listing is uncertain.

In the last funding round, Lacework had achieved a valuation of US$ 8.3 billion, eight times more than the valuation it achieved in a funding round at the start of 2021.

Lacework IPO or direct listing?

As there is no official announcement from the company, it is uncertain whether Lacework will opt for an IPO or a direct listing. Some reports have previously suggested that nothing is final, and anything could happen when the company decides to become a public company.

Unlike an IPO requiring investment banks for underwriting, a direct listing allows private companies to float their shares on a stock exchange without roping in investment banks.

After the last funding round, the new investors in the company were Counterpoint Global (Morgan Stanley) and Franklin Templeton.

Seeing the present situation of the market, it seems that interested investors will have to wait for some more time because IPOs haven't received a good response from investors in 2022.

Lacework was founded in 2015 and continues to remain private. The company automates the analysis and collection of a large volume of data flow via its client's cloud platform.

Bottom line

Lacework has emerged as one of the leaders in the cloud computing industry, and it provides security tools to several customers, including data warehousing firm Snowflake.

Lacework IPO©2022 Kalkine Media® 

The company could grow further as a 2021 Markets and Markets report indicates that the cloud computing market will grow rapidly in the next few years.

The report claimed that the cloud computing market will grow from US$ 445.3 billion in 2021 to US$ 947.3 billion by 2026.

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Please note, the above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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