ForeScout Technologies, a US-based network security software provider backed by corporates Intel and Itochu will raise $116m in its initial public offering, after pricing its shares at $22.00 yesterday.
The IPO price represents the top of the $20 to $22 range Forescout had set earlier this month, and the company has also increased the number of shares in the offering from 4.8 million to 5.28 million.
Founded in 2000, ForeScout has developed software that provides an alternative to the software agents traditionally used by big businesses for large networks.
The technology automatically detects and classifies each device that connects to the network and tracks their security status continuously.
The company made a $47.7m net loss in the first half of 2017, up from $39.6m the year before, but increased its revenue from $68.7m to $90.6m in the same period. It has raised a total of $158m in venture funding altogether.
Trading group Itochu was among the investors in the $10m round closed by ForeScout in 2005. Intel Capital, the corporate venture capital arm of semiconductor maker Intel, lists it as a portfolio company but has not disclosed details of its investment.
Neither of the corporate investors owned 5% or more of ForeScout pre-IPO. Its largest shareholder is Amadeus Capital, the VC firm that led a $30m round for the company in 2014 that included Aspect Ventures, Accel, Pitango and Meritech Capital Partners.
Amadeus Capital’s stake will be diluted from 19.2% to 16.7% in the offering, while other notable shareholders include Accel (13% post-IPO), Pitango (11.9%), Meritech (11.4%) and Wellington Management Company, which led ForeScout’s $76m series G round in 2015 (7.9%).
Morgan Stanley, JP Morgan Securities and Citigroup Global Markets are lead book-running managers for the offering. BofA Merrill Lynch and UBS Securities are also book-running managers, while KeyBanc Capital Markets is co-manager.
ForeScout will float on the Nasdaq Global Market, and the underwriters will have the 30-day option to buy a further 792,000 shares, which would boost the size of the IPO to more than $133m.