Pivotal Software Prices IPO Midrange At $15 Per Share

Morning Report: Pivotal Software has priced its IPO at $15 per share, the midpoint between the poles of its indicated range of $14 to $16 per share.

Good morning and welcome back to IPO Friday. Today, Pivotal Software.

As expected, the company priced its IPO heading into today’s trading cycle. At $15 per share, the company’s 33.1 million selling shares will bring it $496.8 million. General Electric can expect to collect $58.2 million from its own 3.8 million shares sold in the debut.

That Pivotal priced mid-range isn’t too surprising. Despite some recent IPOs pricing above their anticipated ranges, Pivotal’s dramatically slowing revenue growth, service-heavy top line mix, and modest aggregate gross margin made it an interesting company to price.

Using our prior estimates, the company is worth around $3.25 billion, give or take a few million. (It’s early!) That gives Pivotal Software a trailing revenue multiple of around 6.4. That’s a slightly spicy result given that it’s ahead of some similarly-sized SaaS companies’ own revenue multiples, firms that have higher percentages of recurring revenue, and more.

Regardless, this is another IPO all but done. More when it starts trading.

From The Crunchbase Daily:

Pivotal prices IPO

Another really big software IPO is hitting the market. Pivotal, a cloud-based app development platform, priced shares for its initial offering at $15 each, the middle of its projected range, raising about $550 million. The offering follows a period of large but shrinking losses and slowing revenue growth for the San Francisco-based company.

Square buys Zesty

In a move to expand its food delivery arm, Square has acquired Zesty, a catering platform that partners with restaurants to provide large meals for offices. San Francisco-based Zesty previously raised about $21 million in venture funding. It’s Square’s second deal in the space. A few years earlier, the fintech company acquired food delivery app Caviar.

Singapore scales as startup center

Singapore-based companies draw nearly half of all venture funding in Southeast Asia, led by big rounds for ride-hailing company Grab and gaming and e-commerce heavyweight Sea Limited. A Crunchbase analysis finds that investments nearly tripled from 2012 to 2017.

Stay up to date with recent funding rounds, acquisitions, and more with the Crunchbase Daily.

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