Smartsheet Inc. | $SMAR Stock | Company Planning To Raise More Than $120 Million In IPO

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Smartsheet

Smartsheet.com (NYSE: Smartsheet)

 

Smartsheet, the company whose technology seeks to enhance office efficiency, plans to raise over $120 million through its upcoming IPO. The Seattle-based firm filed for an initial public offering with U.S Securities and Exchange Commission to be listed on the New York Stock Exchange (NYSE).

The expected date of the offering is April 27 and the company will trade under the “SMAR” ticker symbol. Smartsheet is the first Seattle tech company to go public in 2018.

The company set the terms for its offering on Monday (April 16) saying it plans to sell 1.6 million shares to shareholders, while making available 10 million shares of class A common stock to the public. The price range for the public offering will be between $10 and $12. Jefferies, Morgan Stanley, RBC Capital Markets, and J.P. Morgan are acting as the lead underwriters for the IPO.

Once the offering is over, the company plans to have two stock classes. Shareholders of class A stock will receive a single a share, while shareholders of class B stock will get 10 votes a share.

As such, key members of the company’s board, entities and executives with big ranks in the firm who hold Class B stock will enjoy about 80% voting power. The backers of the company include CEO Mark Mader, who holds a stake of 2.3%, Brent Frei, a co-founder who holds 8.8%, Madrona Venture Group with 28%, and Insight Ventures with 32%.

Although Smartsheet is not profitable, the company is growing quite fast. At just 13 years old, the firm claims to have over 92,000 customers. It reported a revenue of $111 million for the period ending January 31, 2018. The company total losses amounted to $49.1 million during the period, and has amassed $106.6 million deficit to date.

Smartsheet’s IPO prospectus with the SEC reveals that it expects to continue making losses in the foreseeable future as invests in corporate, R&D, and marketing expenses. The prospectus also says that Smartsheet will use the proceeds of its IPO to grow its team, expand globally, invest in data operations, and strengthen marketing activities.

Smartsheet platform facilitates work execution by enabling organizations and teams to plan, automate, capture, and manage work at scale, leading to better business outcomes and more efficient processes.

As of December 2017, the company had a total of 787 employees spread across three offices in Edinburgh, Seattle and Boston. The competitors of the company include Workfront, Atlassian, Asana, and Planview, as well as tech giants like Microsoft and Google.

https://www.sec.gov/Archives/edgar/data/1366561/000162828018004275/smartsheets-1a1.htm

https://www.marketwatch.com/story/smartsheet-sets-ipo-terms-to-offer-up-to-1396-million-worth-of-shares-2018-04-16

https://techcrunch.com/2018/03/26/smartsheet-files-for-ipo/

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