Darktrace is set to cut the price of its imminent London IPO, according to Sky News, which says the stock market float is being handled with caution.
The report claims that Darktrace and its advisers are leaning towards an IPO valuing the cybersecurity company at £2.4bn and £2.7bn.
Only weeks ago, the IPO was expected to set a valuation of £3.6bn (US$5bn), Sky noted. However the calamitous Deliveroo debut, which saw the takeaway delivery stock lose around a quarter of its value on day one, has led to a more conservative approach.
Scrutiny and ‘noise’ around the company‘s first investor Mike Lynch was also noted by Sky as a potential reason for the more cautious approach.
Last week Darktrace confirmed its intention to list on the premium segment of the London Stock Exchange’s main market, with admission slated for early May.
Darktrace intends to have a free float of at least 20% of its share capital following admission and said it expects to be eligible for inclusion in the FTSE UK indices.