Pivotal Software Sets IPO Targets

sanfrancisco

#1

Another Fab 7x7 based company going IPO soon…

https://www.bizjournals.com/sanjose/news/2018/04/09/pivotal-software-sets-targets-to-raise-up-to-681m.html


#2

I didn’t realize they moved from Palo Alto to SF. Last I heard, they had declining revenue. They bought a company just to get Paul Maritz to run Pivotal, and it went horribly.


#3

Everyone wants to be in the Fab 7x7 even if they deny it…


#4

Pivotal Software, a division of Dell Technologies, said on Monday it expects its initial public offering of 37 million Class A shares to raise up to $592 million.

Pivotal Software said it expects the offering to be priced between $14 and $16 per share.

The company, which plans to list on the New York Stock Exchange under the ticker symbol “PVTL”, filed for an IPO on March 23.

Reuters had earlier reported that Dell was considering a sale or IPO of Pivotal Software.

Dell, the world’s largest privately held technology company, has been under pressure to boost profitability after its debt-laden acquisition of data storage provider EMC Corp. for $67 billion in 2016 failed to meet financial targets due to intensifying price competition.

Pivotal Software, an enterprise PaaS platform, filed for an IPO in late March.

Its original filing has a $100 million deal as a placeholder, but with the company’s $509.4 million of revenues (at a 22% growth rate), it will likely be much higher.

Half of Pivotal’s revenues are derived from subscriptions, which are highly prized on Wall Street. Subscription revenues grew a stunning 73% y/y in FY17.

The company is essentially owned entirely by Dell.

Pivotal’s IPO was originally seen as a means to pay down Dell’s ~$50 billion of debt, though its filing claims that IPO proceeds will not be transferred to Dell.


#5

Pivotal Software Inc., a Bay Area-based business that’s majority-owned by Dell Technologies Inc., set a price range Monday for an upcoming IPO in which it plans to raise up to $681 million.

The 2,500-person company, headquartered in San Francisco and with a campus in Palo Alto, was spun out of EMC and VMware in 2012. Dell’s control of the company came when it bought EMC Corp. for $67 billion in the largest technology takeover ever.

Pivotal said it plans to sell 37 million shares of Class A stock for between $14 and $16 each and has set aside about 5.6 million more for its underwriters to buy if they want.

The Pivotal IPO is the latest in a series of moves Dell (NYSE:DVMT) is making, which includes a possible IPO and a purchase of the rest of Palo Alto-based VMware Inc. (NYSE:VMW).

In addition to Dell, Ford Motor Co. and Microsoft Corp. became major investors in Pivotal after they participated in a $253 million funding in 2016.

Pivotal’s software helps developers build apps for the cloud. It posted a net loss of $163.5 million in its latest fiscal year, improved from a $232.9 million loss the year before. Revenue rose by about 22 percent to $509.4 million.

The company would be valued at about $4 billion if it prices at the top of its range and its bankers buy all the shares allotted to them. That estimate is based on the combined value of its outstanding Class A and Class B shares.

Dell will control 70.1 percent of Pivotal’s total outstanding shares of common stock and about 95.9 percent of the combined voting power of both classes of common stock.

Pivotal plans to list its Class A common stock on the New York Stock Exchange under the symbol “PVTL.”


#6

That whole Dell, EMC, VMware structure is INSANELY complex.


#7

Really surprised that Pivotal makes 500mn in revenue. Are there really that many firms using CloudFoundry?


#8

EMC and Dell.


#9

I have got pre-ipo allocation from fidelity between $14-$16 range, trying to get and hold on to it. Let me see.