Israeli cybersecurity company SentinelOne has filed a revised prospectus with the US Securities and Exchange Commission for an IPO on the New York Stock Exchange. While in the past there have been reports that SentinelOne is aiming for a $10 billion valuation, the latest filing indicates a more modest $7 billion.
This would still make it one of the largest ever Israeli IPOs on Wall Street and the second most valuable Israeli cybersecurity company after Check Point and ahead of CyberArk and Varonis.
SentinelOne is planning to issue 32 million new type A shares at between $26-29 per share to raise between $832 million and $928 million. This amount could rise by an additional $125-139 million if the underwriters exercise their options at the IPO price within 30 days.
The valuation would be between $6.7-7.5 billion. At the mid-point, the company would raise $878 million at $27.5) per share, at a company valuation of $7.1 billion. The company will raise over $1 billion, if the underwriters exercise their options.
The money raised will serve SentinelOne as working capital, and general business purposes and possibly acquisitions of companies or technologies. The planned IPO will be supported by a long list of underwriters: Morgan Stanley, Goldman Sachs, Bank of America, Barclays, Wells Fargo, UBS, Jefferies, Deutsche Bank, Piper Sandler, Cowen, BTIG, Needham, Loop Capital, Drexel Hamilton, and R. Seelaus.
SentinelOne was founded in 2013 in Israel by CEO Tomer Weingarten and Almog Cohen, who no longer has an active role in the company. Headquartered in Mountain View, California, the company's development center is in Tel Aviv. SentinelOne has developed an AI-based platform to protect end-points including laptops, desktop computers, servers and cloud servers as well as other web-connected devices.
According to IVC, the company has raised $797 million to date in eight financing rounds, the last of which were completed over the past year at a company valuation of $3.26 billion.
On the assumption that the IPO is completed at the mid-point of $27.50 per share mentioned in the prospectus, Weingarten's 3.9% stake would be worth $238 million. Other major shareholders include Insight Partners (15.6%), Tiger Global (12.3%), and Third Point Ventures (11.1%).
Published by Globes, Israel business news - en.globes.co.il - on June 21, 2021
© Copyright of Globes Publisher Itonut (1983) Ltd. 2021