By
Steve Muchoki
May 9th, 2024
ON24 noted that it has applied for listing on the New York Stock Exchange where it is set to trade under the ticker symbol ‘ONTF’.
Interactive webinar platform ON24 is seeking an Initial Public Offering (IPO) in its bid to go public. Per a Reuters report, the ON24 IPO will push its valuation to $2.22 billion, an impressive figure for the budding cloud-based webinar platform.
The COVID-19 pandemic has accelerated the swift embrace of alternative meeting platforms. While Zoom Video Communications Inc (NASDAQ: ZM) comes off as one of the best performing webinar and virtual communications platforms during the pandemic, emerging outfits like ON24 also saw a significant uptick in their overall growth and embrace.
Per the proposed IPO, ON24 announced that it will be offering about 6,315,789 shares of common stock while certain selling stockholders will be offering an additional 2,285,188 shares of common stock in the public offering. The firm also noted that it intends to grant the IPO underwriters a 30-day option to purchase up to 1,290,146 additional shares of common stock.
The shares are offered within the range of $45 to $50 per share and if the IPO prices at the upper end, the platform may realize as much as $430 million.
“ON24 will not receive any proceeds from the sale of the shares by the selling stockholders. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering,” the official release reads.
The firm is expected to turn in a net income in the range of $17.8 million and $20.3 million for the year ended December 31, 2020. It is set to capitalize on the increasing interest in investors affinity for tech stocks in its pursuit to become a publicly-traded outfit
Other Upticks of ON24 IPO
ON24 noted that it has applied for listing on the New York Stock Exchange where it is set to trade under the ticker symbol ‘ONTF’. The firm is aiming to get off on the IPO with good backing as interests from investors such as funds affiliated with U.S. investment firm Tiger Global Management have indicated an interest in buying up to an aggregate of $75 million in shares in the offering.
The major underwriters for the IPO include Goldman Sachs Group Inc (NYSE: GS), JPMorgan Securities LLC and KeyBanc Capital Markets are acting as lead book-running managers for the proposed offering. Baird, Canaccord Canaccord Genuity Group Inc (TSE: CF), Needham & Company, Piper Sandler Companies (NYSE: PIPR), and William Blair are acting as co-managers for the proposed offering.
The date for the ON24 stock to start trading has not been declared yet as no assurances are given as to when the offering will be completed.