Another day another IPO(s). Due to the recent success of public offerings from companies like Yext, Okta and Snap it seems the time is now for startups to go public.
And tomorrow we have two IPOs that are weirdly similar when you look at the numbers. Both will offer the same amount of shares for the same price on the same exchange, and even sound alike – Carvana and Cloudera.
I wonder who will get to ring the opening bell? Anyways, read on for some details about each company and their respective offering.
Carvana
Carvana, the online-only used car dealership famous for its car vending machines, has priced its IPO at $15 per share. The company will trade on the New York Stock Exchange under the ticker CVNA.
Carvana initially said they would price their offering between $14-$16 per share, so this price hits the midpoint of that range.
The company will offer 15,000,000 shares in tomorrow’s IPO, with an additional 2,250,000 shares allocated for underwriters to exercise. Assuming all shares are purchased, the company will raise just over $250 million, and value itself at around $2.08 billion.
Before their IPO Carvana raised a total of $300 million in equity, with the latest coming from a $160 million Series C raise six months ago. They also took on $400 million total in debt to finance expansion, of which $170 million was outstanding at the end of 2016.
Cloudera
Cloudera, the enterprise data company, will also go public tomorrow on the NYSE. The company will similarly price their shares at $15, which falls above the expected $12-14 range that was expected.
Since Cloudera is also offering 15,000,000 shares with an optional 2,250,000 for underwriters, they will follow in Carvana’s footsteps and raise a little over $250 million assuming all shares are purchased.
However there is one stark difference between the two companies – Cloudera once raised private money in 2014 at $30.92 per share, giving it a valuation of just over $4 billion, which is almost double the expected $2 billion valuation it should get tomorrow from public markets.
Of course since IPO shares are expected to pop during the first few hours of trading, it’s possible that this valuation could increase when the stock starts changing hands tomorrow. But it’s still almost certain that regardless of the stock’s first-day performance it will take some time for the company to grow large enough to match its last private valuation.
We’ll keep an eye on both IPOs tomorrow and let you know how they perform.
Comment