Cloudera announced terms Monday for its initial public offering that would give the big-data software company a market valuation well below its valuation three years ago in the private market.
In an amended prospectus, Cloudera said it would raise $195 million by offering 15 million shares on the New York Stock Exchange at a price between $22 and $24 per share.
It expects 128,064,103 shares to be outstanding after the IPO, giving Cloudera a potential valuation of up to $1.79 billion. Including options and grants, its valuation could range from $2.2 billion to $2.4 billion.
As ZDNet reports, that would fall well below the $4 billion valuation Cloudera received three years ago when Intel acquired 22% of the company at $30.92 a share. Before Cloudera published its initial prospectus, reports indicated it would pursue a $4.1 billion valuation in the IPO.
Cloudera, which was founded in 2008, provides Apache Hadoop-based software and training to data-driven enterprises. It has more than 1,000 large enterprise customers in more than 45 countries, including BT Group, Citigroup Global Markets, Experian, and Navistar International.
According to its prospectus, the company booked $261 million in sales for fiscal 2016 while posting a net loss of $187.3 million. For the prior year, it lost $203.1 million on sales of $166 million.
Cloudera was “one of the first companies to commercialize Apache Hadoop and to develop solutions for enterprises built on this open source technology,” SeekingAlpha said.
ZDNet noted that Cloudera’s public valuation is still well above the market cap of Hortonworks, a Yahoo spinoff that is its closest publicly-traded rival. Hortonworks’ shares have fallen 60% since it went public in 2014.
According to tech research firm IDC, the Big Data boom seems to be abating in some areas as new technologies emerge. “Big Data is evolving as other technologies compete with Hadoop and Hadoop sales flatten. Cloudera is looking to other technologies to augment growth,” Carl Olofson, IDC’s research vice president, said.
Intel has indicated an interest in purchasing up to 10% of the Cloudera shares being offered in the IPO.