Israeli cybersecurity company Tufin Software Technologies is making progress towards an IPO on the New York Stock Exchange. Yesterday, the company published an updated prospectus. The company is aiming at an offer price of $12-14 per share, which means that it will seek to raise $92.4-108 million. If the underwriters exercise their options to buy further shares, the amount raised will grow to $106-124 million. The offering price values the company at some $450 million. The lead underwriters are JP Morgan, Barclays Capital and Jefferies. Oppenheimer & Co., Piper Jaffray & Co., Stifel, Nicolaus & Company, and William Blair are co-managers.
Ramat Gan-based Tufin was founded in 2015 by CEO and chairperson Ruvi Kitov and CTO Reuven Harrison, both formerly at Check Point Software Technologies Ltd. (Nasdaq: CHKP). The company's solution manages enterprise network security and provides cybersecurity solutions in various environments: local area networks, private cloud, public cloud, and hybrid.
Tufin's system studies the enterprise network and automatically analyzes the risk to security levels of any change that takes place.
Tufin's revenue totaled $85 million in 2018, 31.7% more than in the preceding year. Its revenue is divided almost evenly between sales of products and professional services and maintenance. Its net loss grew from $2.8 million in 2017 to $4.3 million in 2018.
Kitov and Harrison each own 9.6% of Tufin's shares. Their stakes will be diluted to 7% each after the offering (assuming that the underwriters exercise their options). Other prominent shareholders are the Catalyst and Marker funds. Catalyst holds a 26.2% stake, which will be diluted to 19.3%, while Marker holds a 28.7% stake, which will be diluted to 21.1%.
Published by Globes, Israel business news - en.globes.co.il - on April 2, 2019
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