JFrog sets price range on Nasdaq IPO

Binary repository management tool provider JFrog is seeking a market value of as much as USD 3.35 billion after setting a price range of USD 33.00 to USD 37.00 apiece for its initial public offering IPO) on Nasdaq. The Israel-incorporated, California-headquartered software company is selling 8.00 million shares while existing investors are offloading 3.57 million stocks. Morgan Stanley, JPMorgan and BofA Securities are among the underwriters working on the listing, which includes an overallotment for an additional 1.74 million new scrips. The overall offering could fetch as much as USD 492.23 million, which would be split between USD 360.20 million for JFrog and USD 132.04 million for certain executives, Scale Venture Partners and Qumra Capital. JFrog provides an end-to-end, hybrid, universal software development and information technology operations (DevOps) platform to achieve continuous software release management (CSRM). As of 30th June 2020, the company had about 5,800 organisations using its system, compared to 5,600 businesss as of 31st December 2019. Since inception, JFrog has raised USD 162.10 million of primary capital and had USD 170.60 million of cash, equivalents and short-term investments, as of 30th June 2020. The group generated revenue of USD 46.10 million and USD 69.30 million for the six months ended 30th June 2019 and 2020, respectively. It incurred a net loss of USD 2.10 million and USD 0.40 million in H1 2019 and H1 2020, respectively. According to data cited in the prospectus, the market for all DevOps tools is expected to reach USD 18.00 billion by 2024. JFrog currently values the CSRM market at about USD 22.00 billion. Zephyr, the M&A database published by Bureau van Dijk, shows 145 IPOs by software publishers, data processing, hosting and related services and customer computer programming companies have been announced in 2020 to date. Ant Group, KE Holdings and Dun and Bradstreet Holdings account for the top three by value, respectively, and other targets range from ZoomInfo Technologies and GoHealth to Vroom and Rackspace and Kingsoft. © Zephus Ltd

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