The artificial intelligence software company C3.ai priced its initial public offering at $42 a share, above the recently increased range of $36 to $38. That wasn’t high enough. C3.ai shares opened for trading at $100 Wednesday morning and were up to $109 shortly after that, for a gain of 160% from the IPO price.
The company is selling 15.5 million shares in the offering, raising $651 million. At $109 a share, C3 has a market value of close to $12 billion on a fully diluted basis.
The deal was originally expected to be priced between $30 and $34 a share.
C3.ai will have about 109 million fully diluted shares outstanding after the offering and two concurrent private placements.
(MSFT) has agreed to buy $50 million of stock at the IPO price, while Spring Creek Capital, an affiliate of Koch Industries, has pledged to invest $100 million on the same basis.
A provider of artificial intelligence software to large enterprises, C3.ai was founded by built the long-time Silicon Valley enterprise software entrepreneur Tom Siebel.
The company will trade on the New York Stock Exchange under the symbol AI. The underwriting group for the deal is led by Morgan Stanley, J.P. Morgan, and BofA Securities. According to the company’s SEC filings,
and Capital Research each indicated an interest in purchasing up to 20% of the company’s Class A stock in the offering.
For the April 2020 fiscal year, C3.ai had revenue of $156.7 million, up 71% from the previous year. But for the six months ended Oct. 31, growth slowed: Revenue for the period was $81.8 million, up just 10.9% from the comparable year earlier period. C3.ai had a net loss of about $69 million in fiscal 2020, and it lost about $14.8 million in the first half of fiscal 2021.
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