AAA Hortonworks analyses $100m of proceeds from IPO

Hortonworks analyses $100m of proceeds from IPO

Hortonworks, a US-based big software developer backed by several corporates, raised $100m in an initial public offering on Nasdaq on Friday, issuing 6.25 million shares priced at $16.00 each.

Founded in 2011, Hortonworks has developed a data management platform for use with Apache Hadoop open source software, and had raised almost $250m in funding prior to the IPO.

The company’s largest shareholder remains internet company Yahoo, which retained a 16.7% stake, diluted from 19.6%. Its shares were worth approximately $121m at the time of the flotation.

Other prominent shareholders in Hortonworks include venture capital firms Benchmark Capital, which holds a 15.7% stake, and Index Ventures (8%), data software provider Teradata (7%) and computer manufacturer Hewlett Packard (4.9%).

Hortonworks plans to use the proceeds to enhance its sales capabilities while expanding in other territories, notably North America and Western Europe, and to further develop its product.

Goldman Sachs and Credit Suisse Securities are the joint lead book-running managers for the offering, RBC Capital Markets is the book-running manager and Pacific Crest Securities, Wells Fargo Securities and Blackstone Capital Markets are serving as co-managers.

They have a 30-day option to acquire an extra 937,500 shares, which would boost the size of the IPO to $115m. Hortonworks’ shares opened at $24.00 on Friday and are trading at $25.14 at time of publication.

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