C3.ai Looks To Raise As Much As $589M In IPO

Artificial intelligence software developer C3.ai is poised to join DoorDash in going public Wednesday after raising its expected price target earlier this week to $36 to $38 per share.

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The Redwood City, California-based company  filed to go public last month and expected shares to price between $31 and $34. It’s expected to begin trading tomorrow, according to IPO Scoop.

The company is looking to offer 15.5 million shares, meaning it could raise $589 million at the top of its new range.

C3.ai describes itself as an enterprise AI software company providing SaaS applications that enable the deployment of enterprise-scale AI applications “of extraordinary scale and complexity that offer significant social and economic benefit,” according to its S-1 filing.

The company had net losses of approximately $33.3 million for its fiscal year ended April 30, 2019 and $69.4 for the year ended April 30 of this year, according to its S-1. It reported an accumulated deficit of $293.6 million as of April 30. C3 also reported its top three customers accounted for 34 percent of revenue in 2019 and 44 percent in 2020.

The company is also planning two concurrent private placements as part of its offering, according to its S-1 filing. Microsoft has agreed to buy $50 million of stock at the IPO price and Spring Creek Capital, an affiliate of Koch Industries, has agreed to buy  $100 million of stock at the same price.

C3 is set to trade on the New York Stock Exchange under the ticker symbol AI.

Morgan Stanley, JPMorgan and Bank of America are acting as the lead book-runners for the IPO.

Founded in 2009, C3.ai has raised a total of $228.5 million in funding, according to Crunchbase data. Its investors include Sutter Hill Ventures, TPG, The Rise Fund, Breyer Capital and Wildcat Venture Partners, as well as both of its founders, Pat House and Thomas Siebel.

Illustration: Dom Guzman