Cloudera Sets IPO Pricing, Terms

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Big data software firm Cloudera on Monday filed an amended Form S-1/A with the U.S. Securities and Exchange Commission (SEC) for an initial public offering (IPO) to issue 15 million shares of common stock in an expected range of $12 to $14 a share. At the midpoint of that range, Cloudera would raise $195 million at an implied market cap of around $1.66 billion, based on 128 million shares outstanding.

Underwriters for the IPO have been granted an overallotment option on an additional 2.25 million shares. Underwriters include Morgan Stanley, JPMorgan, Allen, Merrill Lynch, Citi, Deutsche Bank, Stifel, JMP Securities and Raymond James.

In the filing, Cloudera said that Intel Corp. (NASDAQ: INTC) has indicated an interest in acquiring up to 10% of the IPO shares. If Intel were to do so, the chipmaking giant would hold about 21% of Cloudera’s outstanding shares following the offering.

Cloudera’s open source-based Hadoop data management platform plays in the same league as Hortonworks Inc. (NASDAQ: HDP) and Box Inc. (NYSE: BOX), neither of which has been able to hold onto its IPO pricing. Hortonworks is down about 60% since its 2014 IPO, and Box is down nearly 30% since its IPO, according to Barron’s.

Cloudera’s valuation had declined from $30.92 per share, the amount Intel paid in 2014, to $17.85 in Cloudera’s most recent awards to employees last month. From a one-time valuation of around $4 billion to less than $2 billion is not a particularly good sign for investors.