Online security and content delivery company Cloudflare priced its shares at $15 per share on Thursday afternoon, $1 per share above its raised range.
The company, which will begin trading on the New York Stock Exchange on Friday, first pitched its IPO between $10 and $12 per share, which it later increased to $12 to $14.
At $15 per share, the company raised $525 million in its debut. Bloomberg first reported the pricing.
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The figure outstrips the company’s prior known fundraising. Cloudflare raised $332.1 million as a private company, with its most recent round totaling $150 million in March 2019. The company last had a private valuation of $3.25 billion.
The San Francisco-based company’s debut on the public markets–it’s listing under the ticker symbol “NET”–comes on the heels of some potentially troubling revelations by the company. Cloudflare said in an updated filing on Wednesday that it “may have failed to comply with certain U.S. export-related filing and reporting requirements and may have submitted incorrect information to the U.S. government in connection with certain hardware exports.”
“We identified that our products were used by, or for the benefit of, certain individuals and entities included in OFAC’s Specially Designated Nationals and Blocked Persons List (the SDN List), including entities identified in OFAC’s counter-terrorism and counter-narcotics trafficking sanctions programs, or affiliated with governments currently subject to comprehensive U.S. sanctions,” the company wrote in the filing.
The news of the disclosure was first reported by the Wall Street Journal on Tuesday, but the company was still able to price above its target range. We’ll see how other investors feel about the company and its new valuation when it starts trading tomorrow.
Illustration Credit: Li-Anne Dias