30th Apr 2021 08:48
(Alliance News) - Darktrace PLC shares rose on its public debut in London on Friday, putting the cybersecurity firm in contention to enter the FTSE 250 index in the next review.
Darktrace had a GBP1.7 billion market value on admission, trimmed back from an earlier mooted valuation of GBP3 billion.
In early dealings on Friday, when conditional trading of its shares kicked off, Darktrace rose to
325p pence, up 30% from its 250p initial public offering price and giving it a GBP2.41 billion market capitalisation.
With that value, Darktrace would comfortably slip into the FTSE 250 in the next quarterly index review. Unconditional dealings of its shares begin next week Thursday.
On Sunday, Sky News reported Darktrace planned to cut the value of its IPO, in a bid to avoid a repeat of Deliveroo PLC's calamitous float.
Hargreaves Lansdown senior investment & markets analyst Susannah Streeter said: "As an expert in assessing threats to other firms, it comes as little surprise that the target price was scaled back from expectations, to lower the risk of a disappointing debut following the Deliveroo listing debacle. The valuation reassessment came amid concerns investors might spy a possible reputational issue, following reports of links between DarkTrace and the former Autonomy CEO Mike Lynch. He is fighting a US extradition bid over fraud allegations relating to Autonomy’s sale to HP."
Lynch is accused by the US's Hewlett-Packard of fraud in HP's USD11 billion purchase of Autonomy in 2011.
Darktrace on Friday said it raised GBP143.4 million through the issue of 57.4 million new shares. Existing shareholders sold stock worth GBP21.7 million.
The UK tech startup, founded in 2013, provides cybersecurity services to businesses using artificial intelligence.
Darktrace Chief Executive Poppy Gustafsson said: "Our company is deeply rooted in the UK's tradition of scientific and mathematic research so we are especially proud to be listing on the London Stock Exchange.
"This milestone marks an exciting day for Darktrace."
By Eric Cunha; [email protected]
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