Darktrace prices IPO at 250 pence, valuing firm at $2.4 billion | #seniorliving | #elderly | #seniors
By Paul Sandle
LONDON (Reuters) – British cybersecurity company Darktrace said on Friday it had set the price of its shares at 250 pence in its London listing, around the midpoint of the range, giving the company a market capitalisation of about 1.7 billion pounds ($2.37 billion).
The valuation is well below the $4 billion which sources had said was the company’s original target.
The tech company, which was backed by entrepreneur Mike Lynch’s Invoke Capital, said the offer comprised 66 million shares, valued at 165 million pounds and representing 9.6% of the capital.
Founded in 2013 in the English university city of Cambridge, Darktrace uses AI to understand IT networks and detect attacks by identifying unusual behaviour from within.
Darktrace was funded as a start-up by Invoke, the venture capital firm established by Lynch after software company Autonomy was sold to Hewlett-Packard for $11 billion.
Lynch, Autonomy’s founder and former CEO, is fighting a U.S. extradition request to face fraud charges related to the sale, and is waiting for the verdict of a multi-billion dollar civil claim by HP at London’s High Court. He denies the charges.
He stepped down from Darktrace’s board in 2018 after the U.S. filed charges related to Autonomy.
Darktrace said it would raise gross proceeds of about 143.4 million pounds by selling new shares, excluding any over-allotment option, to accelerate product development and strengthen its balance sheet.
Darktrace Chief Executive Poppy Gustafsson said the company owed much gratitude to the Invoke team for their pivotal role in the early years, “without which today’s success would not have been possible”.
Other investors in the company included Talis Capital, Hoxton Ventures, Summit Partners, KKR, TenEleven Ventures, Insight Partners, Vitruvian and Balderton Capital.
“Our company is deeply rooted in the UK’s tradition of scientific and mathematic research so we are especially proud to be listing on the London Stock Exchange,” she said.
“Today is just the beginning.”
Conditional dealing will begin at 0700 GMT.
($1 = 0.7177 pounds)
(Reporting by Paul Sandle; editing by Sarah Young/Guy Faulconbridge)