Amy Pressman, co-founder of Medallia. Image source: Flickr
Business survey company Medallia on Monday set the terms for its initial public offering, planning to raise nearly $240 million when it debuts on the public markets later this month.
Medallia is selling 13.3 million shares of common stock, and additional stockholders are selling an additional 1.175 million. The shares will trade on the New York Stock Exchange under the ticker MDLA. The company estimates the shares will sell between $16-$18 each, raising roughly $240 million.
With that range, Medallia would be valued around $2.2 billion. This is a drop from its latest private valuation — investors said it was worth $2.4 billion after its latest $70 million funding round in February, according to Pitchbook. Medallia has raised over $330 million from investors including Saints Capital, TriplePoint Venture Growth and Sequoia Capital since 2010. Cofounders Borge Hald and Amy Pressman, who are married, together own just over 15% of the company, but plan to sell shares during the IPO. Medallia CEO Leslie Stretch, who joined in August 2018, owns roughly 1.3% of the company and does not plan to sell in the IPO.
The enterprise survey company, which competes with SurveyMonkey and Qualtrics, collects data on customer experiences to develop analyses that help companies make business decisions, it says. It reported that both its customer base and revenues increased 20% for the year ending April 30 and January 31, respectively, mostly from subscriptions. But it also said its loss widened to $82.2 million for the same period.
Medallia placed 15th on Forbes’ Cloud 100 2018 list, and is joining the likes of other enterprise tech companies going public this year. So far, software companies have found success in their public debuts — workplace message platform Slack popped in its unusual direct listing debut, and Zoom, the video conferencing company, surged 72%, making founder Eric Yuan worth $3.2 billion.