Software maker C3.ai, which was founded by former Oracle Corp. executive Tom Siebel, is pricing its initial public offering (IPO) above the marketed range, aiming to make $651 million, Bloomberg reported, quoting unnamed sources familiar with the goings-on of the company.
The company, based in Redwood City, California, sold 15.5 million shares on Tuesday (Dec. 8), pricing them at $42 a piece after initially putting them at $36 to $38, according to the unnamed sources.
Based on the outstanding shares listed in C3.ai’s filings, the company is likely to have a market value of $4 billion at $42 a share.
The IPO is being backed by Morgan Stanley, JPMorgan Chase and Bank of America, according to Bloomberg, and the company’s shares were expected to begin trading Wednesday (Dec. 9) under the symbol AI.
Some of the big name backers for C3.ai will acquire shares in a private placement as part of the listing, including Microsoft, which would buy $50 million at IPO price, and Spring Creek Capital, which plans to buy $100 million in common stock, Bloomberg writes.
PYMNTS reports that the company’s good fortunes have come from investors flocking to tech stocks, and Siebel, in a statement, said the company’s focus is to leverage its tech leadership, first mover advantage and management leadership to access a new global position. If it succeeds, he said, C3.ai will be “one of the world’s great software companies.”
Other big tech companies have also capitalized on the current hunger for tech stocks, including Palantir Technologies, Snowflake and Unity Software, which all went public this year. DoorDash launched a successful IPO soon after seeing its revenues soar because of the increased need for delivery during the pandemic.
Earlier this year, the company entered into a partnership with Microsoft and Adobe on a new customer-relationship management software intended to compete with Salesforce.com‘s, according to Bloomberg.
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