Concerns that the poor initial public offering by the British food delivery app Deliveroo did not deter the United Kingdom based cybersecurity start-up Darktrace to announce plans to go public in London. This was announced by Darktrace on Monday.
The London based company is engaged in the business of detecting and responding to cyber threats in a business’ IT systems using artificial intelligence technology. The self-learning AI that the company uses is able to monitor threats in real time and present strategies to make immediate corrective actions, the company said.
Darktrace plans to float at least 20 per cent of issued share capital through an initial public offering at on the London Stock Exchange’s premium market, said the company which was founded in 2013 by a group of former intelligence experts and mathematicians. That listing will give it the opportunity to be included in benchmark indexes like the FTSE 100.
“Our intention to list on the London Stock Exchange marks a major milestone in Darktrace’s history of rapid growth, and a historic day for the U.K.’s thriving technology sector,” said Poppy Gustafsson, Darktrace’s CEO and co-founder.
“We are proud to be part of that tradition of British innovation, as the U.K. becomes a leading global centre for the development of AI,” she added.
This announcement from Darktrace comes at a time when there are concerns and fears about the lackluster market debut of Deliveroo – a company backed by Amazon. The first day of trading saw the shares of the company drop by 30 per cent which made it one of the one of the worst performing IPOs for large companies at London.
When Deliveroo had announced plans to go public in London, UK officials had thrown their weight behind the company and now its IPO flop threatens to embarrass them. In its a bid to attract more high-growth tech companies, London is looking to relax its listings requirements.
However according to some analysts, the poor IPO of Deliveroo will be limited to the company because of its issues of employment rights concerns, and hence the IPO performance should not be considered ton be a trend for the broader public listing in London.
Deliveroo said it’s “just starting life as a public company” and is “confident” in its ability to deliver long-term returns for shareholders.
For the year ended June. 30, 2020, revenue of $199.1 million was reported by Darktrace which was 45 per cent more than the $137 million it had made in the same period a year ago. The loss of the company was at $28.7 million which was lower than the $34.7 million loss by Darktrace in its 2019 fiscal year.
Invoke Capital, the venture fund of UK entrepreneur Mike Lynch, is the biggest investor in Darktrace.
Darktrace was valued at $1.65 billion in its last private financing round. Its IPO would be led by Jefferies, Berenberg, KKR Capital Markets with Needham & Company and Piper Sandler acting as joint bookrunners.
(Adapted from CNBC.com)