June IPO would make Twilio first Bay Area tech company to go public in 2016

Twilio on Monday set terms for its pending IPO, prompting hope that the San Francisco-based cloud communication company will be the one to end this year’s slump.

Twilio is expected to go public next week, according to Renaissance Capital, which manages IPO-focused exchange traded funds. The company plans to raise about $130 million, offering 10 million shares at a price between $12 and $14.

If Twilio does take the plunge next week, it will be the first Bay Area tech company to do so in 2016. The IPO market has been distressingly quiet so far this year, and analysts have been eagerly waiting for the first company to break the ice.

Dell’s SecureWorks went public in April, getting off to a rocky start. But the cybersecurity company, which is based in Georgia and doesn’t rely on VC funding, hardly represents the typical tech “unicorn.” Twilio, a venture-backed Silicon Valley company worth about $1 billion, may be a better market barometer.

Twilio filed for its IPO in May. Volatile market conditions and concerns over inflated “unicorn” valuations have scared most other private Silicon Valley tech companies away from the public market. As venture capitalists pump money into private companies at soaring valuations, there’s worry that the public market won’t support such high prices.

Photo: Screen shot of Twilio’s IPO filing. (SEC.gov)

 

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