Cloudera Inc. revised S-1 documents filed earlier this month to assign a price range of $12 to $14 per share for its IPO on Monday. The price would give the company a market capitalization of $1.79 billion, which is well short of a recent private valuation of $4.1 billion, MarketWatch reports.
The company said it plans to sell 17.3 million shares, which could bring in up to $242 million. The price will get finalized the night before Cloudera debuts on the stock market, which is expected to happen before the end of April.
The Big Data startup had revenue of $261 million in its fiscal 2017, up from $166 million in 2016, according to the filing. Losses were $186.32 million, down from $203 million in the same timeframe the year before. The filing says the company expects to "continue to incur net losses for the foreseeable future."
Cloudera offers tools and services based on Hadoop, the open-source software framework used for processing Big Data sets. The company has generated excitement from investors because of its ability to help customers make sense of Big Data. But going from a one-time valuation of around $4 billion to less than $2 billion is not a particularly positive sign.
Cloudera is in a unique position, however, because Intel is one of the primary investors and could potentially cloud the company's ability to maintain its identity. Intel invested $740 million in Cloudera in 2014 and currently owns 22% of the company, prior to the IPO. In its S-1 filing, Cloudera said that Intel has indicated an interest in acquiring up to 10% of the IPO shares, which would bring it’s share to about 21% following the IPO.
Cloudera has a strong market potential, but also faces competition from legacy data management providers and public cloud providers who provide similar offerings. Its more modest valuation estimates, however, may save the company from having its stock price dip significantly once it goes public.