Kony Solutions Inc., a provider of mobile-application platforms, has talked to banks including Goldman Sachs Group Inc. (GS) and JPMorgan Chase & Co. (JPM) about selling shares in a public offering as early as this year.
The company, which has its headquarters in Orlando, Florida, as well as in London, plans to select bankers this year after introducing a service that will provide easier access to its app platforms, Chief Executive Officer Raj Koneru said in an interview yesterday. The share sale will take place this year or in 2014, he said.
“We are talking with a lot of bankers,” Koneru said. The company hasn’t decided how much stock to sell or the amount of funds to raise, he said.
Kony, which has yet to make a profit, expects to record $80 million to $100 million in revenue this year, about double its 2012 sales, Koneru said. An initial public offering could raise at least $120 million for Kony, valuing the company at more than $700 million, Tom Taulli, an analyst who covers IPOs, said in an interview.
“Enterprise is really hot right now,” Taulli said. “Right place at the right time -- that always helps with an IPO. I suspect they’ll do well.”
Spending on app-development tools for multiple mobile operating systems will grow at an average annual rate of 39 percent to reach $8.2 billion in 2016, according to Smith’s Point Analytics LLC.
Founded in 2007, Kony sells annual subscriptions for its app platform-service, which allows developers to customize products to their own specifications.
The company has raised about $35 million from Georgian Partners and Insight Venture Partners and may use proceeds from an IPO to improve its software and for research and development, Koneru said.
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