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Freshworks Raises $1.03B in US IPO Valued at $10.13B

UTC by Steve Muchoki · 2 min read
Freshworks Raises $1.03B in US IPO Valued at $10.13B
Photo: Freshworks Inc / Twitter

After a successful IPO, Freshworks shares are scheduled to start trading on the Nasdaq stock exchange on Wednesday under the ticker symbol “FRSH”.

Freshworks Inc (NASDAQ: FRSH) has raised a total of $1.03 billion from its US initial public offering (IPO). Hereby, the business software firm has seen its market valuation scaled to $10.13 billion. Notably, the firm offered 28,500,000 shares of our Class A common stock at $36 per share. Initially, the company anticipated pricing its shares between $28.00 and $32.00 per share. On the higher end, the company anticipated raising to $969 million. However, a notable demand spike in Freshworks’ stock resulted in price alterations, thereby a higher valuation.

After a successful IPO, Freshworks shares are scheduled to start trading on the Nasdaq stock exchange on Wednesday under the ticker symbol “FRSH”.

According to the company’s SEC filing, the lead underwriters include Morgan Stanley, JPMorgan, and BofA Securities.

Freshworks Market Outlook Before and After Its IPO

The company has significantly benefited from the coronavirus crisis as more businesses shifted to an online mode of operations. In the year 2020, the company saw its revenue spike by approximately 40%. Notably, the growth prospects did not end last year as the company continued to grow its sales for the past nine months.

For the first half of the year, 2021, the company saw its revenue grow to $169 million, up from $110 million in the first half of 2020. During the same period, the company saw its net loss shrank to $9.8 million from $57 million a year ago.

As of 2019, the company was valued at approximately $3.5 billion. Earlier this year, the company decided to forego an IPO valued at approximately $5 billion. Currently, the company prides itself in having over 52,000 global customers, out of which, over 13,000 have a $5k APR.

On the Flipside

Freshworks has entered the public market, having grown from an Indian-private company that migrated to San Mateo, California to stay near its customers. Founded back in 2010, the tech company has grown to compete with notable companies including SalesForce.com Inc (NYSE: CRM).

However, SalesForce is miles ahead as it prides itself with a market capitalization of approximately $252.8 billion. Additionally, the company has been publicly traded for over a year, thus giving investors and analysts more data to work with for future investments. Having been rated 48 times, SalesForce stock received an average rating of Buy. Hereby indicating the confidence level it has instilled in the market.

Freshworks is now tasked with venturing more markets and widening its revenue collection avenues.

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Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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