Cloudera Divulges IPO Price Estimate -- WSJ
April 18 2017 - 3:02AM
Dow Jones News
By Austen Hufford
Big-data software company Cloudera Inc. gave a price estimate
for its initial public offering that values it as high as $1.79
billion, though the per-share price range is still well below
levels previously paid for company stock.
Cloudera said 17.3 million shares of its common stock could be
sold in the IPO for a price of between $12 and $14 a share. With
128 million shares outstanding expected after the offering, that
values the company at between $1.54 billion and $1.79 billion.
When share options and restricted stock grants are included, the
company could be valued at between $2 billion and $2.4 billion.The
company filed its initial paperwork to go public late last
month.
Still, the expected price is well below what was previously paid
for Cloudera. Intel Corp., which owns 22% of the company as of
January, paid $30.92 a share in 2014. In March, Cloudera granted
stock awards to employees at $17.85 a share, according to filings.
As of December, Cloudera's mutual-fund investors had marked down
their estimated values of their shares to between $17 and $26,
according to The Wall Street Journal's Startup Stock Tracker.
Cloudera also noted that big investor Intel is interested in
buying up to 10% of its to-be-offered shares. At Cloudera's
estimated price range, up to $241 million of shares would be sold
during its IPO, and Intel's potential 10% stake would cost it up to
$24 million.
A potential 10% purchase by Intel would help keep its stake in
Cloudera from being diluted. Without the potential purchase,
Intel's ownership would drop to 19% after the offering, but it
would remain at around 21% if Intel did purchase the full 10%.
Cloudera, based in Palo Alto, Calif., sells software and
services that help customers analyze oceans of digital information
flowing from networked devices. Its technology is built upon an
open-source project called Hadoop that was developed to store and
run computing processes across many different computers.
Rolfe Winkler contributed to this article.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
April 18, 2017 02:47 ET (06:47 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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