- Palantir, the secret tech company, could sell for $ 22 billion on its planned market debut on Sept. 30, the Wall Street Journal reported Thursday.
- Palantir bankers said the company could trade at $ 10 per share, which translates to a market valuation of about $ 22 billion.
- The controversial company decides to bypass the traditional route of going public and choose a direct listing instead.
- Over the past year, Palantir̵
- You can find more stories on the Business Insider homepage.
Big data company Palantir Technologies is expected to be priced at $ 22 billion when it goes public in late September, WSJ reported.
The data miner is avoiding a traditional IPO route and instead decides to go public via a direct listing, the journal reported.
According to WSJ, Palantir’s bankers have advised investors that shares could trade at a price of $ 10 each, giving the company a market valuation of around $ 22 billion. It is not certain whether the company’s shares could trade at this value and whether they will stay at that level for long, the newspaper said.
Palantir’s stock rose privately over the past year. The volume-weighted average price was USD 7.31 in August and USD 9.17 in September.
Typically, offering existing stocks via a direct float is cheaper and faster than going public, and the company would not have to use a number of middlemen to subscribe to the listing. That means the company prefers to fly alone and hopes that there is already enough pent-up investor interest. At the same time, it saves high fees.
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Swedish company Spotify decided to bypass the IPO route in 2018 due to its unique combination of brand awareness and an already massive valuation of the private market.
Palantir was founded in 2003 by a group of PayPal alumni and Stanford computer scientists, including CEO Alex Karp and venture capitalist Peter Thiel.
The company is notoriously classified because of its relationships with governments around the world and its controversial collaboration with agencies such as Immigration and Customs.
It creates software for managing, analyzing and backing up data. Its name comes from a mystical, spherical object in the “Lord of the Rings” that enables its owner to “see from a distance”. In total, the company has raised $ 2.75 billion in venture capital.
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