The company will trade on the New York Stock Exchange under the symbol “PLTR”. The NYSE announced a reference price for Palantir of $ 7.25 per share, which would value the company at nearly $ 16 billion or below its private market estimate of $ 20 billion. (Reference prices are guidelines for investors, but do not dictate how stocks will open.)
Following in the footsteps of Spotify and Slack, Palantir will be publicly available through direct listing, which means it does not rely on insurers to assess demand and set a price. The direct quotation includes only the sale of existing shares and no new capital is raised.
Asana, a launching task management software, also debuted via a direct list on Wednesday. The NYSE announced it as a reference price of $ 21
In the 17 years since its founding, Palantir Technologies has received financial support from Central Intelligence Agency, became one of the most valuable private companies in the United States and won a seat at the table along with the largest technology companies at a meeting with President Donald Trump. Co-founder Peter Thiel, a member of the so-called PayPal Mafia and a longtime board member of Facebook, backed Trump’s 2016 campaign.
The company, which has long been a secret, revealed in August through its prospectus that it had never made a profit and that about a third of its revenue came from its three largest customers. In the first six months of 2020, it reported revenues of $ 481 million, up nearly 50 percent from a year earlier, and lost $ 164 million, up from $ 280 million in the same period last year. It lost $ 580 million in revenue of $ 743 million in 2019.
Named after the gems in JRR Tolkien’s fantasy novel The Lord of the Rings, Palantir has two products that customers use to organize and collect insights from piles of data: Gotham, which was originally designed for government customers, and Foundry, which aims to commercial customers.
Palantir, which provides governments and corporations with tools to help with everything from tracking the spread of the new coronavirus to resetting terrorists, said in its prospectus that one of its goals is “to become the default data operating system.” in the US government. “
Government procurement revenue is $ 345.5 million, or 53% of total revenue in 2019. In the application, Palantir said U.S. government agencies using its software include the Department of Health and Human Services, the Department of Homeland Security, the Securities and Exchange Commission, the Food and Drug Administration, the National Institutes of Health, the Centers for Disease Control and Prevention, the Department of Veterans Affairs, the Army, Navy and Air Force.
As for how Palantir’s stock will fare, Kathleen Smith, director of Renaissance Capital, which manages IPO-focused exchange-traded funds, told CNN Business that regular initial public offerings “fly off the shelf.” Smith cites how well Zoom shares have been accepted since they went public in April 2019, for example. Snowflake, a data storage company, earlier this month became the largest public offering of software ever, raising $ 3.4 billion from its public offering. But there is less precedent for understanding how direct listings will be received by investors in the near future, Smith said.