U.S. cloud services company Datadog Inc. is looking to raise up to $717.6 million via an initial public offering of its class A common stock.
Datadog is offering 24 million shares at a public offering price of $24 per share to $26 per share. The company granted the underwriters the option to buy up to an additional 3.6 million shares of class A common stock to cover for any overallotment options. The company will have two classes of common stock after the IPO: class A common stock and class B common stock.
The company expects to receive net proceeds of about $566.0 million, or about $651.5 million if the underwriters exercise their option to buy additional shares, based on an assumed IPO price of $25 per share, the midpoint of the estimated price range. Datadog plans to use the proceeds for general corporate purposes, as well as to acquire complementary businesses, products, services or technologies.
The company applied to list its class A common stock on the Nasdaq Global Select Market under the symbol DDOG.
The underwriters for the offering are Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Barclays Capital Inc., Jefferies LLC, RBC Capital Markets LLC, JMP Securities LLC, Raymond James & Associates Inc., Stifel Nicolaus & Co. Inc., William Blair & Co. LLC and Needham & Co. LLC.
