On the heels of stories that DoorDash is targeting an initial IPO valuation up to $27 billion, C3.ai additionally dropped a new S-1 filing detailing a first-draft guess of what the richly valued firm could be value after its debut.
C3.ai posted an preliminary IPO value vary of $31 to $34 per share, with the corporate anticipating a sale of 15.5 million shares at that value. The enterprise-focused synthetic intelligence firm can also be promoting $100 million of inventory at its IPO value to Spring Creek Capital, and one other $50 million to Microsoft on the identical phrases. And there are 2.325 million shares reserved for its underwriters as effectively.
The entire tally of shares that C3.ai may have excellent after its IPO bloc is bought, Spring Creek and Microsoft purchase in, and its underwriters take up their choice, is 99,216,958. On the extremes of its preliminary IPO value vary, the corporate could be value between $3.08 billion and $3.37 billion utilizing that share depend.
These numbers decline by round $70 and $80 million, respectively, if the underwriters don’t buy their choice.
So is the IPO a win for the corporate at these costs? And is it a win for all C3.ai buyers? Amazingly sufficient, it feels just like the solutions are sure and no. Let’s discover why.
Slowing progress, rising valuation
If we simply have a look at C3.ai’s income historical past in chunks, you may argue a progress story for the corporate; that it grew from $73.8 million within the the 2 quarters of 2019 ending July 31, to $81.8 million in income throughout the identical portion of 2020. That’s progress of just below 11% on a year-over-year foundation. Not nice, however constructive.