Talend prices IPO higher than expected, in year’s second Silicon Valley tech offering

Redwood City software company Talend raised close to $100 million in its initial public offering Thursday, marking only the second tech IPO to come out of Silicon Valley this year.

The company offered 5.25 million shares for $18, pricing them above the expected $15 to $17 range — a positive sign for investors watching Talend for signs that the market has come back to life. The deal raised $94.5 million, a number that could grow if investors take advantage of an option to buy additional shares.

Talend is expected to begin trading on the NASDAQ under the symbol TLND.

Talend, which was founded in France and makes tools to help companies organize and consolidate their data, brought in $76 million in revenue last year and had net losses of $22 million, according to documents filed with the SEC.

Thursday’s offering is a relatively small IPO, but the industry is paying attention because Talend is a fast-growing software company, said Kathleen Smith, a principal at Renaissance Capital, which manages IPO-focused exchange-traded funds.

There were no Silicon Valley tech IPOs during the entire first half of the year, and analysts were lamenting an IPO freeze. But the market seems to be picking up.

Talend follows the $150 million IPO of San Francisco-based cloud communications startup Twilio, which makes messaging tools used by Uber and other companies. Twilio shares surged to nearly twice their IPO price on their first day of trading, and were still up after the market closed Thursday.

Earlier this month Japanese mobile messaging app Line raised more than $1 billion in the largest tech IPO since 2014.

Overall, Talend is the seventh tech IPO of 2016, Smith said, and the six prior offerings had an average return of more than 70 percent.

“Surprise!” she said. “Tech IPOs are working. That should be something to celebrate out there.”

Talend CEO Mike Tuchen called Thursday’s IPO an important milestone.

“As notable as today’s milestone is though,” he wrote in an emailed statement, “we are still in the early days of our journey. We’re looking forward to maximizing the opportunity we have in front of us and building our business for long-term success.”

Mike Tuchen, the CEO of Talend, a data-analytics software company, photographed in San Francisco in March. (John Green/Bay Area News Group)



Tags: , ,


Share this Post