Sunday, 24 June 2018

Alteryx IPO oversubscribed ahead of pricing this week

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The US$126m IPO of self-service data software provider Alteryx is oversubscribed ahead of pricing Thursday, a banker close to the deal told IFR.

The latest in an expected rush of enterprise software IPOs this year, Alteryx is selling 9m Class A shares, or 16% of outstanding, at US$12-$14 each.

“Books are oversubscribed with still a good majority of accounts to hear from,” the banker said.

Goldman Sachs and JP Morgan are leading a seven-firm underwriting syndicate.

Two existing Alteryx holders, ICONIQ Capital and Insight Venture Partners, plan to buy up to 675,000 shares each, or about 15% of the deal.

Alteryx is another fast-growing enterprise software IPO, a staple for investors in new technology issues in the past five years. Yext and Okta are two others that could launch IPOs soon.

Alteryx comes on the heels of last week’s IPO of MuleSoft, which soared 46% on debut on Friday in a sign that software valuations are on the rise.

Overwhelming investor demand let MuleSoft increase its marketing rate to US$14-$16 a share and price the deal at US$17. It is unclear whether Alteryx will be able to do the same.

Alteryx’s growth and high gross margins are important selling points, as are the predictability of subscription revenues and continued M&A activity in the sector.

The company grew revenue 59% to US$85.8m and generated gross margins of 81% last year, but lost US$24.3m.

Alteryx’s software platform helps its 2,300 customers prepare, blend and analyze data from multiple sources.


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