Dell SecureWorks Plans To Launch IPO In April

SecureWorks Corporation is planning to hold IPO in April 2016 to receive funds for growth.

A cyber-security service provider, owned by Dell, is looking to end the tech IPO drought. SecureWorks Corporation, owned by the closely held parent company of Dell – Denali Holding – is looking to unveil its IPO in April 2016 persons close to the agreement state.

The organization could start its “roadshow” to promote the shares to investors throughout the week of April 11. The stock will probably trade on Nasdaq with the symbol “SCWX”, revealed to an earlier securities filing.

If it succeeds, SecureWorks, which allows corporations to lock their systems down and monitor for computer intruders, could be the first tech organization to launch on US exchange in the next year and give an optimistic signal regarding the condition of a market for IPO that has continued to ail amidst market volatility.

No other tech organization has listed stock in the United States following a small Chinese company, which did so on December 15, 2016. People told SecureWorks would probably spin off a comparatively tiny part of itself in the offering due to uncertainty regarding the reception from investors in a tough IPO market.

Cutting down the supply of IPO stock could raise demand and add to the chances they trade well. The cyber-safety service provider could only raise a sum of $150 million. Proceeds and valuation from an IPO are usually in flux unless just prior to the trading of the shares.

The company is planning for a valuation less than $2 billion. SecureWorks had been aiming at $2 billion as of previous summer, but with many of its competitors trading down one-fifth or over, its expectations regarding valuation have fallen down.

Amidst the lack of technology offerings – a significant driver of the new-issue market – the first quarter was amongst the most sluggish on record for IPOs, with just nine contracts that raised only $1.2 billion. Market watchdogs have issued a warning that this part of the year might not bring a lot of relief.

Another factor that has adversely affected the market for IPO concerns a large number of private technology companies with valuations of more than a billion are overvalued. The Georgia based company differs from most of those organizations, as it was established through the last technology boom and is accommodated within a huge, developed corporate parent.

It is similar in one respect – SecureWorks is not profitable. In fact, the losses of the organization have increased alongside its sales revenue. For the financial year ending in January 29, Dell SecureWorks earned revenue worth $339.5 million, a rise by 30% from the past year, while it earned a net loss of $724 million, which was approximately two times as wide, revealed securities filing.