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Palantir’s direct listing reference price: $ 7.25, says the NYSE

Palantir Technologies CEO Alex Carp arrives at the Tech for Good Summit in Paris, France, on May 15, 2019.

Charles Plateau Reuters

The New York Stock Exchange said on Tuesday that the reference price for Palantir’s direct listing is $ 7.25 per share.

Based on a fully diluted number of 2.17 billion shares outstanding, which includes uninvested options and shares, the reference price will show a valuation of $ 1

5.7 billion, below its private valuation of $ 20.4 billion in 2015.

Palantir provides software and data analysis services to help government agencies and large companies understand vast amounts of information. Among the co-founders is Peter Thiel, the billionaire Facebook investor and supporter of President Donald Trump’s 2016 presidential campaign, who initially funded Palantir and remains its largest shareholder.

The company pursues a direct listing instead of a traditional IPO, which means that the company does not issue new shares and instead allows existing shareholders to sell shares to new investors. The reference price usually reflects the latest market transactions on the private market, not necessarily indicating where the shares will open on Wednesday.

Palantir and Asana, founded by Facebook co-founder Dustin Moskowitz, debuted through direct listings on Wednesday, following an approach previously used by Spotify and Slack.

In its prospectus, Palantir said that the average price per share in private markets in August was $ 7.31, and on September 1 – $ 9.17.

In a separate filing on Tuesday, Palantir said 475.8 million shares would be available for sale on the first day of trading.

I WATCH: The Palantir investor talks about the company’s debut

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