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Managing No of Total Share
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1 Morgan Stanley 91 13,632.44 12.6
2 JP Morgan 113 12,482.13 11.5
3 Goldman Sachs 84 12,150.64 11.2
4 Citigroup 74 9,853.36 9.1
5 Barclays 49 8,423.78 7.8
6 BAML 75 7,804.99 7.2
7 Credit Suisse 52 5,717.82 5.3
8 Wells Fargo 44 4,768.58 4.4
9 Deutsche Bank 33 4,085.39 3.8
10 Jefferies 63 3,804.35 3.5
Total 468 108,527.16
Including all domestic and international deals and rights issues
Source: Thomson Reuters SDC code: C3r
Tenable secures beachhead with US$250m IPO
US Cybersecurity specialist touts expansion potentialTENABLE, the latest incumbent in the war on
cyber terrorism, raised an upsized US$250.7m
on its IPO.
Runaway investor demand allowed for
pricing on Wednesday of 10.9m shares at
US$23.00, above the upwardly revised
US$20–$22 marketing on a deal originally
sized at 9.2m shares and marketed at
US$17–$19.
Morgan Stanley, JP Morgan, Allen & Co and
Deutsche Bank were joint bookrunners.
Tenable quickly closed any IPO discount (and
there wasn’t much of one) with a 31.5% day-one
gain Thursday to US$30.25 as investors fought
to fill out positions.“Any incremental buying and the stock is
going to gap higher,” one hedge fund manager
that participated in the deal told IFR. “Most of us
got 10,000 to 50,000 shares. Hell, I saw it. We
moved the stock 50 cents.”
At the IPO pricing, Tenable fetched a high-
single digit multiple of EV-to-2019 sales
projected by the underwriting banks. That
compares with eight times for a comp group of
security stocks such as Proofpoint, Rapid7 and
Splunk, as well as high-growth software names
Okta and ZScaler.
While there are companies that protect
against threats (Palo Alto Networks, Symantec)
and others that detect and respond (FireEye,ForeScout, Splunk, Tanium), Tenable’s software
sits at the top, providing a high-level view of
vulnerabilities and specific measures.
Tenable sees itself as the top-level domain
of cybersecurity; much like ServiceNow is to IT,
Workday to HR, or Salesforce to CRM.
Tenable counts more than half of the Fortune
500 as customers and 24,000 overall, including
more than 4,400 enterprise-level customers
that pay US$5,000-plus annually.
Last year, its software-as-a-service model
generated revenue of US$187.7m, 86% of which
was recurring and representing a 51% increase
year-on-year.
Stephen Lacey