AppDynamics, which provides application performance management software for business-critical apps, announced terms for its IPO on Thursday. This high profile name could set the tone for venture-backed tech deals in 2017, testing investor appetite for high-growth, large-loss businesses.
The San Francisco, CA-based company plans to raise $132 million (7.5% of market cap) by offering 12 million shares at a price range of $10 to $12. Insiders intend to purchase $32 million worth of shares in a concurrent private placement. At the midpoint of the proposed range, AppDynamics would command a fully diluted market value of $1.75 billion.
AppDynamics was founded in 2008 and booked $206 million in sales for the 12 months ended October 31, 2016. It plans to list on the Nasdaq under the symbol APPD. Morgan Stanley, Goldman Sachs, J.P. Morgan, Barclays, UBS Investment Bank and Wells Fargo Securities are the joint bookrunners on the deal. It is expected to price during the week of January 23, 2017.
