US-based big data software provider Cloudera set the range yesterday for an initial public offering in which semiconductor technology producer Intel could look to boost its stake.
Cloudera plans to issue 15 million shares priced between $12 and $14 each, which would raise $210m if the company floats at the top of its range. Intel, which holds a 22% stake, has expressed interest in buying 10% of the shares offered in the IPO.
Founded in 2008, Cloudera has built an enterprise data platform that uses machine learning and advanced analytics to organise and gain insights from data sourced from a variety of places.
The company has raised $670m in total funding, Intel having invested $371m directly as part of a $530m series F round in 2014 before buying the same amount of stock from existing shareholders.
Intel’s 22% share in Cloudera will be diluted to 19.4% in the IPO, though it will retain a stake of about 21% if it follows through with the commitment to buy the additional shares. The $30.92 per share valuation at which Intel made the investment will likely be halved in the offering.
The company’s other notable investors include Accel, which owns a 16.3% stake that will be cut to 14.4%, and fellow venture capital firm Greylock Partners, the owner of a 12.5% share that will be diluted to 11.1%.
GV, the corporate venturing unit formerly known as Google Ventures, is also set to exit, having participated in the series F round alongside Intel, T. Rowe Price and an affiliate of MSD Capital while Accel, Greylock, In-Q-Tel, Meritech Capital Partners and Ignition Partners are all earlier investors.
Morgan Stanley, JP Morgan Securities, Allen & Company, Merrill Lynch, Pierce, Fenner & Smith, Citigroup Global Markets, Deutsche Bank Securities, Stifel, Nicolaus & Company, JMP Securities and Raymond James & Associates are the IPO’s underwriters
The banks will have a 30-day option to acquire an additional 2.25 million shares, which could push the size of the offering up to $241.5m.