LONDON: Darktrace plc has confirmed its intention to undertake an initial public offering (IPO) on London Stock Exchange (LSE).

The Company intends to apply for admission of its ordinary shares to the premium segment of the Official List of the FCA and to trading on the London Stock Exchange’s Main Market for listed securities.

The final offer price in respect of the Offer will be determined following a book-building process, with Admission currently expected to occur in early May 2021.

 Confirmation of Offer Details:

·     A premium listing on the Official List of the FCA and admission to trading on the Main Market for listed securities of the London Stock Exchange.

·    The Offer will comprise a primary offer to raise proceeds to accelerate new product development, drive broader awareness of the Company’s products globally and to provide balance sheet strength and financial flexibility. There also is also expected to be a secondary sell-down of existing ordinary shares by certain existing shareholders.

·      The Offer will be a targeted offering to institutional investors outside the United States pursuant to Regulation S and to QIBs in the United States pursuant to Rule 144A under the United States Securities Act of 1933 (the “Securities Act”).

·     Immediately following Admission, the Company is targeting a free float of at least 20% of its issued share capital and expects that it would be eligible for inclusion in the FTSE UK indices. In addition, it is expected that Shares representing up to a further 15% of the Offer will be made available pursuant to an over-allotment option.

·     In connection with the Offer, each of the Company, its directors and all employees and existing shareholders with a shareholding greater than 0.5% are expected to agree to customary lock-up arrangements (subject to customary exceptions) restricting the disposal of Shares for a period of time following Admission.

·       Any additional details in relation to the Offer will be disclosed in the Prospectus, if and when published.

·     The Company has engaged Jefferies International Limited, Joh. Berenberg, Gossler & Co. KG, London Branch and KKR Capital Markets Partners LLP as Joint Global Co-ordinators and Joint Bookrunners, and Needham & Company, LLC and Piper Sandler & Co. as Joint Bookrunners in the event the Offer proceeds.

The British technology company is targeting a valuation of as much as $4 billion in the initial public offering, which could raise between $350 million to $400 million, according to people familiar with the matter.

Darktrace uses artificial intelligence to detect cyberattacks on the computer networks of companies and organizations, and its customers include Coca-Cola Co., engine maker Rolls-Royce Holdings PLC and the city of Las Vegas. Darktrace said its sales grew at a compound annual rate of 58% between 2018 and 2020 as companies sought help tackling faster and more sophisticated cyberattacks that humans were struggling to keep up with.

The company was founded in 2013 and received early investment from Mike Lynch, a British tech entrepreneur at the center of a lengthy legal dispute regarding the sale of his previous company Autonomy to Hewlett-Packard Co. https://www.darktrace.com