Cyber Security Firm Avast Cuts IPO Price Guidance To 250-270 Pence Per Share - FbiCables Network | The News that Shapes World Opinion

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Wednesday, May 09, 2018

Cyber Security Firm Avast Cuts IPO Price Guidance To 250-270 Pence Per Share


The logo of Avast Software company is seen at its headquarters in Prague
The logo of Avast Software company is seen at its headquarters in Prague, Czech Republic, April 12, 2018. REUTERS/David W Cerny
May 9, 2018
LONDON (Reuters) – Private equity-backed cyber security firm Avast [IPO-AVAS.L] reduced the expected price range for its landmark initial public offering to 250-270 pence a share on Wednesday, from an earlier range of 250-320 pence.
The company aims to sell around 25 percent of its stock and raise up to $200 million in proceeds in what is expected to be one of Britain’s biggest ever technology IPOs.
Based on Wednesday’s price guidance, Avast would achieve a market capitalization of between 2.5 billion and 2.7 billion pounds ($3.38 billion and $3.65 billion) upon listing.
The market admission will take place on Thursday, one of the bookrunners said.
In 2017, Avast’s adjusted revenue was $780 million and adjusted cash earnings before interest, tax, depreciation and amortization (EBITDA) was $451 million.
With net debt of around $1.35 billion, the enterprise value of the company could be up to $5.9 billion after the offering.
Avast is 46 percent-owned by its founders, Czech entrepreneurs Pavel Baudis and Eduard Kucera. CVC Capital Partners [CVC.UL] has a 29 percent stake, with Summit Partners holding 7 percent.
The security software services provider had already planned a U.S. IPO in 2012 before backtracking citing market conditions.
The listing is expected to be the biggest by market capitalization in London since July when the floatation of Russian gold company Polyus gave it a 6.3 billion pound market value.

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