C3.ai, which provides a SaaS platform for deploying enterprise AI applications, announced terms for its IPO on Monday.
The Redwood City, CA-based company plans to raise $504 million by offering 15.5 million shares at a price range of $31 to $34. Insider BlackRock and new investor Capital Research Global Investors intend to purchase a combined 20% of shares in the offering. Koch Industries and Microsoft intend to purchase a combined $150 million in a concurrent private placement. At the midpoint of the proposed range, C3.ai would command a fully diluted market value of $4.3 billion.
The company provides SaaS applications that enable the rapid deployment of enterprise-scale AI applications on Azure, AWS, the IBM Cloud, Google Cloud Platform, or on-premise. Its two primary families of software solutions include the C3 AI Suite, which is a comprehensive application development and runtime environment that is designed to allow its customers to design, develop, and deploy Enterprise AI applications of any type; and C3 AI Applications, which is built using the C3 AI Suite and includes a family of industry-specific and application-specific turnkey AI solutions.
C3.ai was founded in 2009 and booked $165 million in revenue for the 12 months ended October 31, 2020. It plans to list on the NYSE under the symbol AI. Morgan Stanley, J.P. Morgan, BofA Securities and Deutsche Bank are the joint bookrunners on the deal. It is expected to price during the week of December 7, 2020.
