The New York Stock Exchange on Tuesday set a reference price of $7.25 per share for Palantir Technologies Inc, valuing the data analytics company at a $15.8 billion ahead of its market that is public debut Wednesday.
While the valuation had been lower than the $20 billion that Palantir fetched in a 2015 fundraising that is private, the reference price is not an offering price for investors to buy shares, but rather a benchmark for performance when the stock starts trading on the stock exchange on Wednesday.
Two previous direct that is high-profile – Spotify Technology SA (N:SPOT) in 2018 and Slack Technologies Inc (N:WORK) in 2019 – had started dealing notably above their reference prices.
Palantir opted to go public through a listing that is direct than a traditional initial public offering (IPO). This meant the company failed to raise hardly any money, but investors that are current able to sell more shares.
Palantir shares are set to start trading on the NYSE on under the symbol “PLTR. wednesday” The public that is opening will be determined by purchase and sell orders gathered by the NYSE from broker-dealers.
Palantir, co-founded in 2003 by billionaire Peter Thiel, is among 2020’s most eagerly anticipated listings that are public. Known for its secretive contracts with the Central Intelligence Agency and other government groups, there is much conjecture about how much Palantir is actually worth and whether investors will view it as a lucrative software provider or a consulting company that is less-glamorous.
The Denver, Colorado-based company has yet to turn a profit. It reported a loss that is net of164.7 million for the first six months of 2020, down from a loss in $280.5 million a year earlier. Revenue over the period that is same almost 50% to $481.2 million. The New York Stock Exchange on Tuesday set a reference price for Palantir.