Morning Report: The repricing of Cloudera is complete. The company’s new valuation isn’t as large a disappointment as it could have been. It’s also true that the company’s new valuation is still a disappointment.
Cloudera, a Hadoop-focused enterprise-facing software company, started trading this morning under the ticker symbol “CLDR.” Currently, Cloudera is worth $18.91 per share, a 26.1 percent gain.
The former-startup sold equity in its IPO at $15 per share, above its proposed $12 to $14 range. Its final valuation was around $2 billion at its IPO price, a number it is now comfortably above.
As you have read by now, the firm was valued at over $4 billion several years ago when Intel made a large investment in the business. When Cloudera filed to go public, it was obvious that it would not be able to defend its prior valuation. Using market comps as a measuring stick, Cloudera was worth far less than its valuation. And, after some rumors about attempts at a flat-price valuation IPO, things shook where they are today.
As these pages have been critical concerning Cloudera over the past few weeks (from a valuation perspective), let’s give the company a moment of peace. Here’s TechCrunch from about 10 hours ago:
Since Cloudera is also offering 15,000,000 shares with an optional 2,250,000 for underwriters, they will follow in Carvana’s footsteps and raise a little over $250 million assuming all shares are purchased.
Cloudera did the smart thing and went public when the market was willing to accept it—pricing above range, raising a bundle of new capital for its business, and delivering a strong first-day result. No, it’s not perfect. But imagine how this would have gone if the Nasdaq was 1,000 points lower.
From the Crunchbase Daily:
Cloudera, Carvana launch IPOs
- Two venture-backed companies – Cloudera and Carvana – launched their IPOs today. Shares of Silicon Valley-based Cloudera, which provides enterprise data services, priced at $15 Thursday night and were up about 20 percent in early trading. Phoenix-based Carvana, which offers an online platform and network of “vending machines” for buying used cars, also priced shares at $15, but the stock fell about 13 percent in initial trading.
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