ON24, which provides cloud-based webcasting and virtual communication services, announced terms for its IPO on Monday.
The San Francisco, CA-based company plans to raise $409 million by offering 8.6 million shares (27% insider) at a price range of $45 to $50. New investor Tiger Global Management intends to purchase up to $75 million worth of shares in the offering. At the midpoint of the proposed range, ON24 would command a fully diluted market value of $2.6 billion.
ON24's platform enables businesses to convert customer engagement into revenue through interactive webinar experiences, virtual event experiences and multimedia content experiences. In the nine months ended September 30, 2020, the company powered more than 159,000 interactive, live digital experiences, engaging an average of 4 million prospective customers and business professionals monthly. In the same period, it facilitated a monthly average of 12 million prospective customer interactions, representing an annual run rate of 2.45 billion engagement minutes. As of September 30, 2020, ON24 had over 1,900 customers in more than 40 countries, and no single customer accounted for more than 5% of its total revenue.
ON24 was founded in 1998 and booked $128 million in sales for the 12 months ended September 30, 2020. It plans to list on the NYSE under the symbol ONTF. Goldman Sachs, J.P. Morgan, and KeyBanc Capital Markets are the joint bookrunners on the deal. It is expected to price during the week of February 1, 2021.
