Freshworks, a software program as a service startup (SaaS) based out of Silicon Valley, is searching to raise $912 million from its initial public supplying (IPO) on Wall Street. Started in Chennai, Freshworks moved to the United States to be closer to its shoppers, but nonetheless maintains a robust presence in Southern India. The corporation will be supplying to sell 28.5 million Class A typical stock at the fixed price tag variety of $28 and $32 per share. Upon effective completion of the IPO, the corporation list on the NASDAQ below the symbol FRSH.
On the upper finish of the price tag band, the corporation will raise $912 million though on the reduce finish the quantity raised will be $798 million. Reports recommend that Freshworks is in search of a valuation of close to $9 billion, substantially greater than the $3.5 billion valuation that was pinned on it through the earlier funding round in 2019. Freshworks will join firms such as Yatra Online, Azure Power and the most current ReNew Power that was listed on NASDAQ by way of a SPAC.
“We have two classes of authorized common stock: Class A common stock and Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote. Each share of Class B common stock is entitled to 10 votes and is convertible at any time into one share of Class A common stock,” Freshworks stated in its IPO filing. The corporation added that outstanding shares of Class B typical stock will represent around 98.9% of the voting energy of its outstanding capital stock quickly following the IPO. Of this, the directors, executive officers, and principal stockholders represent around 78.3%.
The corporation plans to use the funds raised by way of the IPO for basic corporate purposes, which includes working capital, operating expenditures and capital expenditures. “We may also use a portion of the net proceeds for acquisitions or strategic investments in complementary businesses, products, services or technologies. However, we do not have agreements or commitments to enter into any such acquisitions or investments at this time,” Freshworks stated.
Marquee worldwide investors hold a stake in Freshworks ahead of the IPO. Accel, Tiger Global Management, CapitalG, and Sequoia Capital India are some of the investors of Freshworks. Although Freshworks is nonetheless a loss-producing entity, it has shown robust development in revenues though trimming losses. In the six months ending June 2021, the corporation had income of $168.92 million, up from $110.47 million in the exact same period last year. Net losses have narrowed down to $9.8 million from $57 million in the year-ago period.
Wall Street has seen a substantial quantity of initial public offerings due to the fact the post-pandemic bull run started and a important quantity of these have been technologies firms.