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Freshworks Files with US SEC for $9B IPO

UTC by Steve Muchoki · 3 min read
Freshworks Files with US SEC for $9B IPO
Photo: Shutterstock

As an emerging growth company, Freshworks prides itself on over 52,000 global customers. Out of which, over 13,000 have a $5k APR.

Freshworks Inc, a leading provider of modern SaaS solutions that solve multiple, complex business problems to companies of all sizes, has filed with the United States Securities and Exchange Commission (SEC) for a $9 billion initial public offering (IPO).

According to the paperwork shared with the SEC, Salesforce‘s largest rival is seeking to sell up to 28.5 million. “Freshworks Inc. is offering 28,500,000 shares of our Class A common stock. This is our initial public offering, and no public market currently exists for shares of our Class A common stock. We anticipate that the initial public offering price will be between $28.00 and $32.00 per share,” the company noted through the filings.

Notably, Freshworks anticipates listing on the Nasdaq Global Select Market under the ticker symbol FRSH.

The company noted that it will offer two different types of shares that have the same value but different voting power. “We have two classes of authorized common stock: Class A common stock and Class B common stock. The rights of the holders of Class A common stock and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote. Each share of Class B common stock is entitled to 10 votes and is convertible at any time into one share of Class A common stock,” the company explained.

Further, Freshworks noted that the total outstanding shares of Class B common stock will reciprocate to 98.9% voting power. However, the company’s directors, executive officers, and principal stockholders will represent approximately 78.3% of such voting power.

The underwriters of the Freshworks shares have been named Morgan Stanley Jefferies, JPMorgan, and BofA Securities Barclays.

Freshworks Market Outlook Ahead of Its IPO

As an emerging growth company, the company prides itself on over 52,000 global customers. Out of which, over 13,000 have a $5k APR.

According to the company’s market update, it had an LTM revenue of $308 million that represented a 49% growth. With a 96% Glassdoor CEO approval rating, the company anticipates reaching out to global markets through going public and raising more money.

Notably, the company recorded an LTM GAAP Net Loss of $10 million. Some of the notable Freshworks’ customers include Vice, Radisson Hotels, Multichoice, Discover, Travix among others.

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. As a tech-based company, entering the public market may push its valuation higher depending on the demand.

Business News, IPO News, Market News, News
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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