This week is set to be among the hottest weeks this calendar year for initial public offerings (IPOs). Indeed, with the IPO market so red-hot, and valuations near all-time highs, it’s unsurprising to see tech companies looking to raise capital via equity markets. The upcoming Freshworks IPO is just the latest of a myriad of offerings we’ve seen of late.
However, investors certainly have reason to be excited about this offering. This U.S. fintech and software player has targeted the fast-growing business and customer engagement segment. A competitor with giant Salesforce (NYSE:CRM), Freshworks has seen burgeoning interest for its software solutions of late. Rising demand for various customer relationship solutions as a result of the pandemic has made it so.
Accordingly, the timing of this Freshworks IPO is perhaps spot on. The company is looking to raise a substantial amount of money to fund its organic growth as well as pursue opportunities as they arise. Therefore, it’s likely this FRSH stock IPO will see a lot of attention this week.
Let’s dive into what investors may want to know about this deal.
What Should Investors Know About the Freshworks IPO?
According to recent reports, Freshworks has recently raised its IPO price range. Previously, the company had targeted a range between $28 and $32 per share. However, this range has been upgraded to $32 at the lower end of the range, with an upper end around $34 per share.
At this higher level, the company expects to raise nearly $970 million at the top end of its range. That’s assuming the company’s entire 284.3 million share offering goes off as planned.
Additionally, at the higher end of this range, Freshworks is expected to have a valuation of close to $10 billion. That would make this IPO one of the largest this year as well.
As mentioned, this Freshworks IPO is slated for this week. Freshworks is expected to start trading on the Nasdaq exchange under the ticker “FRSH” tomorrow. Investors looking for a high-volatility event may want to keep this stock on their radar. Indeed, this IPO is set to be an intriguing one to watch.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.