The numbers are in for the first non-healthcare tech IPO of the year — and it doesn’t look good.
SecureWorks, a cyber security company owned by Dell, raised $112 million in its public market debut Thursday. The Georgia-based company had planned to sell 9 million shares at a price between $15.50 and $17.50, raising as much as $150 million. Instead, the company offered 8 million shares for $14, according to Renaissance Capital.
That’s not a great showing for the company that was supposed to help pump life back into the stagnant IPO market. There was almost no activity in the first quarter of this year — eight companies raised $700 million, compared to 32 companies raising $6.8 billion the quarter before, according to Renaissance Capital. All the companies to go public in the first quarter were healthcare companies. Experts say the volatile stock market has scared many companies away.
SecureWorks is unprofitable, reported CNN, which said its IPO “looks like a dud.” The company lost more than $72 million in 2015, and told potential investors it didn’t see a path to profitability in the near future, the news station reported.
Photo: A man stops to photograph Nasdaq in Times Square as Facebook has its IPO, Friday, May 18, 2012, in New York. (AP Photo/Richard Drew)
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