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HIGHLIGHTS
- Darktrace Plc shares collapsed approximately 15% on Monday
- On 25 October 2021, the stock nosedived as much as 27%
- In Sep-Oct, KKR Dark Aggregator, along with two others, sold 25m shares
Shares of Darktrace Plc (LON: DARK) collapsed approximately 15% on Monday, 1 November 2021, as the stock of Cambridge-headquartered cybersecurity corporation continues to decline following the stern comments by Peel Hunt analysts with regard to its capital allocation on R&D, market size and the ongoing competition in the cyber defence space.
On 25 October 2021, the stock witnessed massive selling pressure with the shares nosediving 27%, subsequent to the unfavourable revelation made by the analysts, as seen in a Bloomberg’s report. The stock is trading well below its recently acclaimed record high when the market prices touched the four-digit mark of GBX 1,003 in the intraday dealings.
Following last Monday’s massive correction, the stock cracked further before restoring marginal ground in the last two sessions. Cumulatively, the shares bounced back 7% on Thursday and Friday. With today’s correction of nearly 15%, the stock stands with a six-day loss of more than 27%. According to the latest data available, shares made a fresh one-month low of GBX 684.08, down 14.76% from the previous close of GBX 802.50 per share.
Darktrace shares (10-day performance)
Source: EODHD/Others
A FTSE 100 company losing more than a quarter of its market capitalisation in a matter of days becomes a concern for the share price performance in the upcoming days. On the other hand, it presents a great buying window with a considerable bargain for the people who want to add positions in the stock.
Nonetheless, Darktrace has been freshly inducted in FTSE 100 after WM Morrison Supermarkets Plc left the prestigious index, also the London Stock Exchange after a decades-long period of 54 years as a listed component of the bourse. The move happened after US private equity firm Clayton, Dubilier & Rice (CD&R) took over Morrison in a £7.1 billion deal, paving the way for Darktrace’s inclusion in the index.
In September of 2021, the Darktrace shares made their way to the mid-cap barometer FTSE 250 after showcasing immense interest of buyers with a strong listing day gain and subsequent positive sessions.
Notably, the shares of Darktrace have declined nearly 32% from their respective 52-week highs. However, the stock is still trading with a premium of more than 173% as compared to the issue price of GBX 250 during the initial public offering (IPO) in April this year.
Shares of Darktrace made a blockbuster debut upon listing on the London Stock Exchange with the shares rallying as much as 43%.
Darktrace initially issued nearly 66 million equity shares during the IPO process, garnering a total of £165.1 million, of which £21.7 million was recognised by the then existing shareholders, while a sum equivalent to £143.4 million was directed to the company.
Recently, KKR Dark Aggregator, Summit DT CLN Holdings 4 and Balderton Capital SFI, collectively sold 25,000,000 ordinary shares of Darktrace at a market price of GBX 750 apiece, the corporation informed through a regulatory filing on 1 October 2021. KKR Capital Markets, alongside Jefferies and Berenberg acted as the joint bookrunners and joint co-ordinators globally for the IPO of Darktrace.
