SecureWorks, the cybersecurity firm owned by Dell, is expected to IPO on Friday, but at a much lower price than was initially expected.
According to Dow Jones, SecureWorks is pricing its initial public offering at $14 a share, below the range of $15.50 to $17.50 it had hoped to fetch in its filings two weeks ago.
That’s a huge disappointment to the overall tech industry, which has been closely watching SecureWorks’ IPO process. There hasn’t been a single tech company that’s gone public this year, largely because of investors’ waning enthusiasm for money-losing companies, and SecureWorks’ disappointing IPO could serve as a bellwether of things to come for the rest of the year.
SecureWorks generated $339.5 million in revenue last year, up from $262.1 million the year before. But that came at a net loss of $72.3 million, despite having gross profit of $155.7 million last year.
At $14 per share, SecureWorks would have roughly a $1.13 billion market cap.
SecureWorks makes cybersecurity software that helps companies monitor their IT infrastructure to protect against hackers and malware. It is almost entirely owned by Dell, which bought it for $612 million in 2011.
As reported by Business Insider