CrowdStrike Almost Doubles in Debut as Tech IPOs Rush Ahead
(Bloomberg) — Software maker CrowdStrike Holdings Inc. soared in its trading debut after raising $612 million in one of the biggest-ever initial public offerings for a cybersecurity company.
Shares opened at $63.50 in New York and rose as much as 97% from their IPO price to $67. The stock closed up 71% to $58 on Wednesday. That valued the company at about $11.41 billion, almost quadruple its $3 billion valuation last June when it raised about $200 million in a private funding round.
CrowdStrike sold 18 million shares on Tuesday at $34 each, above its already elevated target range, the company said in a statement confirming an earlier report by Bloomberg. The Sunnyvale, California-based company had marketed the shares for $28 to $30, a target range it had earlier raised from $19 to $23.
Founded in 2011 by former McAfee Inc. executives, CrowdStrike makes software to protect clients from cyberattacks, including predicting and detecting potential hacks. Its clients include Amazon.com Inc. and HSBC Holdings Plc, according to its filings.
CrowdStrike Chief Executive Officer George Kurtz said he expects continued interest in the company partly because of geopolitical events, which will prompt governments and businesses to review their security.
“The stock is going to move.” Kurtz said. “We just need to stay focused on the long term — protecting our customers from breaches.”