US-based big data processing platform operator Hortonworks set the range for its initial public offering on Monday between $12 and $14 a share, and will issue 6 million shares.
Were Hortonworks to float at the midpoint of the range, it would raise $78m at a fully diluted market value of $659m.
Underwriters Goldman Sachs, Credit Suisse, RBC Capital Markets, Pacific Crest, Wells Fargo and Blackstone Advisory Partners will have the 30-day option to buy another 900,000 shares, which could lift the proceeds from the IPO as high as $89.4m.
Hortonworks is the developer of a platform for open source Apache Hadoop big data software which can be used by businesses. It is growing fairly rapidly but this expansion is being offset by rising losses.
The company’s revenue for the first nine months of 2014 more than doubled year on year to $33.4m, though this resulted in an $86.7m net loss over the same period, up from $48.5m the year before.
Hortonworks has raised approximately $248m since it was founded in 2011. Internet company Yahoo is its largest shareholder, owning a 19.6% stake that will be diluted to 16.8% through the offering.
Other notable shareholders in Hortonworks are software company Teradata (a 7% stake post-IPO), computer hardware manufacturer Hewlett Packard (5%), and venture capital firms Benchmark (15.8%) and Index Ventures (8%).