SolarWinds valued at $4.8 bn after listing shares at NYSE

Enterprise software maker SolarWinds has listed its shares at NYSE on Friday, giving US company a market value of about $4.80 billion.
SolarWinds NYSE listingThe company’s shares opened at $15.41, about 2.7 percent above its initial public offering price of $15, Reuters reported.

The Austin, Texas-based company had initially filed to sell 42 million shares and expected the offering to be priced between $17 and $19 apiece.

The company cut the IPO size after stockholders, who were initially selling 25 million shares, chose not to sell any shares. SolarWinds increased its offering size by 8 million shares and cut the target price range to between $15 and $16 per share.

It finally sold 25 million shares at $15 apiece on Thursday, at the low end of its target price range, raising $375 million in total proceeds, which it expects to use to pay down debt.

SolarWinds clients include Accenture, Chevron, Lockheed Martin, among others. It provides management software and operates in an industry expected to grow annually at 6.6 percent to around $53.6 billion by 2021, according to International Data Corporation. Its competitors include IBM, KKR-owned BMC Software, and NetScout Systems.

The company was taken private in a $4.5 billion deal in 2015 by investment firms Thoma Bravo and Silver Lake Partners, which also holds stakes in Tesla, Alibaba Group, Ant Financial, Dell Technologies and Didi Chuxing.

Silver Lake is the company’s biggest shareholder with 44.3 percent stake after the offering. Thoma Bravo – an investor in cyber firm McAfee – holds 36.1 percent.

SolarWinds reported revenue of $398.6 million for the first six months of 2018, up 17 percent from a year earlier. Net loss widened to $86.9 million in the same period, from $45.7 million a year ago.