Informatica (INFA) IPO: 9 Things to Know About the Upcoming Nearly $9 Billion IPO

October 21, 2021 12:40 PM EDT
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Informatica (NYSE: INFA), the enterprise software developer, is due to go public next week in a deal from private equity sponsors. Here are 9 key things to know about the upcoming Informatica IPO:

1. Informatica IPO Date - Informatica will go public next Wednesday, October 27. Informatica will start trading under the ticker symbol “INFA” on the New York Stock Exchange (NYSE). Generally, shares that make their public stock market debuts start trading between 10 AM - 2 PM ET.

2. Informatica IPO Pricing - Informatica expects to price its shares between $29.00 and $32.00.

3. IPO Shares Offered - Informatica is looking to sell 29,000,000 shares of its common stock. The S-1 filing shows the number of outstanding shares after IPO offering would be 273,698,607 shares.

4. INFA IPO Valuation - Informatica is seeking a valuation of between $7.93 billion and $8.76 billion.

5. INFA IPO Raised Proceeds: At the midpoint of the pricing range, Informatica is looking to raise $884.5 million. The company intends to use raised proceeds to repay the outstanding indebtedness and for general business purposes.

6. INFA IPO Underwriters - Goldman Sachs and JPMorgan are the key IPO underwriters. BofA and Citigroup are also participating in the offering.

7. Informatica Financials - Informatica increased its addressable market significantly and scaled subscription revenue from $118 million in 2016, to $594 million in 2020 and to $324 million for the six months ended June 30, 2021. Over this period, subscription revenue has grown from 31% of our total software revenue in 2016, to 90% in 2020 and to 95% during the six months ended June 30, 2021. Our subscription ARR has correspondingly scaled from $99 million at December 31, 2015, to $139 million at December 31, 2016, to $607 million at December 31, 2020 and to $686 million at June 30, 2021, representing a compound annual growth rate (CAGR) of 42% over this time frame. To underscore the expansion of our business via growth in new products, as of June 30, 2021, $581 million in subscription ARR, or approximately 85% of our total subscription ARR, was derived from products other than our traditional PowerCenter offering. This $581 million in subscription ARR from new products at June 30, 2021 represented year-over-year growth of 36%.

8. Informatica TAM - Informatica claims it is addressing a $44 billion market (The potential ARR per company X total number of companies that INFA could sell to globally).

9. Informatica Ownership - Following this offering, Permira and CPP Investments will control approximately 88.5% of the voting power of our common stock (or approximately 87.2% of the voting power if the underwriters exercise in full, their option to purchase additional shares of our Class A common stock).

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