Accel-Backed ForeScout Climbs After Raising $116 Million in IPOBy
Cybersecurity company ForeScout Technologies Inc. climbed in its debut after raising $116 million in its initial public offering, pricing shares at the top end of the marketed range.
ForeScout rose 20 percent to $26.44 at 11:11 a.m. in New York, valuing the company at about $983 million. The company sold 5.28 million shares for $22 apiece Thursday, after marketing them for $20 to $22 each, according to a statement.
The San Jose, California-based company posted a net loss of $75 million on revenue of $167 million in 2016, according to a regulatory filing. ForeScout saw a loss of $27 million on revenue of $126 million the previous year. The company said it plans to use the proceeds from the offering for general corporate purposes that include hiring more employees and funding marketing and product development.
ForeScout specializes in software that monitors smartphones, tablets and laptops that connect to computer networks to ensure they’re free of malware. The company had sold private stakes to investors including Accel Partners, Amadeus Capital Partners and Wellington Management Group LLP.