SecureWorks Raises $112 Million in Year’s First Technology IPO

SecureWorks Raises $112 Million in Year's First Technology IPO

Dell Inc’s cyber-security unit SecureWorks Corp raised $112 million in the first US initial public offering of a technology company in 2016, less than it had hoped for, amid investor skepticism over its profit margins and prospects.

Market jitters and fluctuations in technology stocks have kept investors skittish about the sector. This time last year, six technology companies had already priced their IPOs, raising a total of $1.6 billion, according to Thomson Reuters data.

SecureWorks priced 8 million shares on Thursday at $14, missing its previously indicated $15.50-$17.50 range, according to a person familiar with the matter. The company was originally aiming to price 9 million shares.

The source asked not to be identified ahead of an official announcement. SecureWorks did not immediately respond to a request for comment.

Technology investors are hoping SecureWorks will open the door for other IPOs in the sector. Technology companies such as storage provider Nutanix Inc have kept their IPO plans on hold, waiting for a more favourable market environment.

In November, payment provider Square Inc completed an IPO that valued it at $2.9 billion, nearly half of the $6 billion valuation that private investors had previously assigned to it.

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Founded in 1999, SecureWorks helps small- and medium-sized businesses manage their security services and protect their networks. Large technology and services firms have bought many of SecureWorks’ rivals in recent years such as Solutionary, Trustwave and SilverSky. It has 4,200 clients in 59 countries.

Cyber-security companies captured investors’ attention last year, amid a spate of high profile hacker attacks. Nevertheless, several of the cyber-security companies that went public in recent years have faltered in the public market. Firms such as FireEye continue to trade under their 2013 IPO price.

Several security companies remain on deck for an IPO. SoftOptiv Security LLC and Blue Coat Systems Inc have both hired investment banks for IPOs expected to come later this year.

The IPO comes as its parent company Dell Inc, which purchased SecureWorks in 2011, is awaiting approval for its proposed acquisition of EMC Corp. SecureWorks has said it will use proceeds from the offering to fund growth initiatives and not support Dell’s own business.

SecureWorks shares are scheduled to start trading on Nasdaq on Friday under the symbol “SCWX.”

Bank of America Corp, Morgan Stanley, Goldman Sachs Group Inc and JPMorgan Chase & Co are among the underwriters for SecureWorks’ IPO.

© Thomson Reuters 2016

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Tags: Apps, Dell, Internet, Laptops, PC, SecureWorks

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BSE plans to hire banks for $150 million IPO

Deutsche Bank, Motilal Oswal and SBI Capital Markets will also be hired as bookrunners. Photo: Mint

Deutsche Bank, Motilal Oswal and SBI Capital Markets will also be hired as bookrunners. Photo: Mint

Mumbai: BSE Ltd, India’s second-biggest exchange, plans to hire Axis, Edelweiss, Jefferies and Nomura as joint global coordinators for a $150 million initial public offering in India, IFR reported, citing two sources close to the transaction.

Deutsche Bank, Motilal Oswal and SBI Capital Markets will also be hired as bookrunners, reported IFR, a Thomson Reuters publication.

BSE will file a draft prospectus for the IPO by next month and plans to launch the offering before 31 March 2017, IFR added. Reuters

[“Source-Livemint”]

Infibeam’s $80 Million IPO Fully Subscribed

Infibeam's $80 Million IPO Fully Subscribed

Indian online retailer Infibeam Incorporation’s $80 million initial public offering (IPO) attracted thin demand from institutional investors, just selling the total number of shares on offer in the country’s first e-commerce listing.

The company, which makes money through its e-commerce portal and also license technology for bricks-and-mortar chains to set up their own sales websites, received orders for about 13.8 million shares against the 12.5 million on offer, stock exchange data showed.

Demand for IPOs in India typically far exceed the supply, and though high net-worth individuals and corporates were active bidders with orders worth 2.2 times the total number of shares reserved for them, institutional investors bid for less than their allocated quota.

Although a comparatively small IPO, Infibeam’s debut was widely expected to serve as a proxy for stock market investors’ appetite for potential future offerings in the e-commerce sector, analysts and bankers said.

Flipkart and Snapdeal, India’s two biggest e-commerce operators, have yet to make formal announcements on plans to go public, but bankers and insiders have said that both are considering a New York listing within the next two years.

Infibeam is aiming to raise up to Rs. 540 crores ($80.84 million), at the top end of a price band of Rs. 360 to Rs. 462 per share.

© Thomson Reuters 2016

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Tags: Apps, E Commerce, India, Infibeam, Internet, IPO, NSE
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Infibeam Sets IPO for March 21

Infibeam Sets IPO for March 21

Online shopping portal Infibeam Incorporation will hit the capital markets on March 21 to mop-up Rs. 450 crore through an initial share plan, becoming the first e-commerce firm to tap the IPO route.

The initial public offer (IPO) will conclude on March 23, as per the latest update available with capital markets regulator Securities and Exchange Board of India (Sebi).

As per Draft Red Herring Prospectus, Gujarat-based Infibeam plans to come out with public issue of equity shares worth up to Rs. 450 crore.

Infibeam competes with Flipkart, Amazon, Snapdeal and others in the e-commerce space.

The capital markets watchdog had already announced a new set of easier norms for listing of startups on a separate platform of stock exchanges. However, Infibeam has decided to go for listing on the main board.

Started in 2007, Infibeam runs several e-commerce services like Infibeam.com, BuildaBazaar, Incept and Picsquare.

It has proposed to list its shares on the NSE and BSE.

The issue is being managed by SBI Capital Markets and Elara Capital India.

Infibeam plans to utilise the IPO proceeds towards setting up of cloud data centre and shifting and setting up of registered and corporate office of the company.

Besides, the funds will be used for setting up of 75 logistics centres, purchase of software and for other general corporate purposes.

Apart from Infibeam, two companies, HealthCare Global Enterprises (HCG) and Bharat Wire Ropes, will hit the capital markets this week.

Besides, three firms – Quick Heal Technologies, TeamLease Services and Precision Camshafts – have already hit the Dalal Street so far this year.

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Tags: Apps, Infibeam, Internet, IPO
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Dorsey-Led Square Posts Strong Results in First Quarterly Report Since IPO

Dorsey-Led Square Posts Strong Results in First Quarterly Report Since IPO

Mobile payments company Square Inc’s revenue beat analysts’ estimates in its first quarterly results since going public in November, easing pressure on CEO Jack Dorsey who is also leading turnaround efforts at Twitter Inc.

Square’s shares rose as much as 7 percent after market on Wednesday, before giving up some of the gains. The stock had closed up 4.8 percent at $12.03 during the day.

The company’s gross payment volume (GPV) – the total dollar amount of all card payments processed by sellers – rose 47 percent to $10.2 billion in the fourth quarter ended December 31.

“Historically, the fourth quarter has been our strongest revenue quarter as sellers typically generate additional GPV during the holiday season,” Chief Financial Officer Sarah Friar said on a conference call.

Transaction revenue – earned from businesses processing payments through Square’s devices – grew 44.7 percent to $298.5 million.

The company, founded in 2009, has built a substantial customer base with a credit card reader that turns a mobile device into a payment terminal. The company also makes point-of-sale registers, and contactless and chip-enabled card readers.

Hardware revenue more than tripled to $6 million in the quarter.

However, Square is facing rising competition in the payments market, from large companies such as PayPal Holdings Inc to smaller startups such as Stripe Inc.

Also, Dorsey’s dual role as CEOs at Twitter and Square has been a sore point with investors at both companies. On his part, Dorsey has looked to play down the concerns.

Square’s total net revenue rose 49.2 percent to $374.4 million in the quarter, beating analysts’ average estimate of $343.2 million, according to Thomson Reuters I/B/E/S.

The company forecast adjusted revenue of $600 million-$620 million for 2016, above the $452 million it reported a year earlier.

However, net loss attributable to common stockholders widened to $80.5 million, or 34 cents per share, from $37.1 million, or 25 cents per share. The loss for this quarter included a charge of 14 cents per share due to a stock dividend for holders of one class of preferred shares in the company.

Square has been investing heavily in new hardware and building out its lending business, Square Capital.

The company’s shares have mostly stayed below the first trading close of $13.07 and even slipped below the deeply discounted IPO price of $9, hitting a low of $8.06 on Feb. 3.

Since then, the stock had risen nearly 50 percent through Wednesday’s close.

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