Anaplan's IPO: What You Need To Know

The cloud-based business planning and performance company Anaplan Inc. is expected this week to begin trading publicly on the New York Stock Exchange under the ticker symbol “PLAN.”

The Details

Anaplan intends to raise $248 million through the offering of 15.5 million shares. The shares will be priced in a range of $15 to $17, up from the prior range of $13 to $15.

The company announced late Thursday it will price 15.5 million shares at $17 per share.

At the middle of the range, the company would raise 14 percent more proceeds than previously anticipated, according to the S-1 filing.

In the 12 months ending in July 2018, Anaplan booked $200 million in revenue. The San Francisco-based company was founded in 2006 and is valued at $1.4 billion. Revenue increased 39.8 percent to $168 million in 2018, up from $120 million in 2017. User growth has been steady, with a jump from 434 in 2016 to 979 in 2018.

The main underwriters include KeyBanc Capital Markets, Canaccord Genuity, Evercore ISI, JMP Securities, Needham & Company, Piper Jaffray and SunTrust Robinson Humphrey.

The Company

Anaplan obtained their newest executive from Tesla Inc. TSLA. David Morton served as Tesla’s CFO for just one month, at the same time as drama surrounding CEO Elon Musk's “funding secured” tweets. Most of the executive team is new, in fact.

CEO Frank Calderoni joined Anaplan in 2017, followed by Chief Revenue Officer Steven Birdsall in 2018, according to the S-1 filing.

Anaplan works with companies like The Coca-Cola Co. KO, VMware, Inc. VMW, RSA Insurance Group plc. and HP Inc. HPQ.

What’s Next

According to the S-1, the purposes of the offering include boosting Anapalan's financial flexibility and the company's visibility.

“We expect to use the net proceeds from this offering for working capital and other general corporate purposes, including funding our operating needs. However, we do not currently have specific planned uses for the proceeds. We may also use a portion of our net proceeds to acquire or invest in complementary products, technologies, or businesses.”

An official IPO date has not yet been released.

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Photo courtesy of Anaplan.

Posted In: Cloud Computing MarketDavid MortonS-1NewsPreviewsIPOsTrading Ideas