Instructure / Canvas LMS Details IPO: $ 2.9 Billion Expected


[ad_1]

IBL News | new York

Instructure Holdings Inc., controlled by Thoma Bravo, owner of leader Canvas LMS, yesterday announced the terms of its initial public offering (IPO) in a amended prospectus filed with the SEC.

Private equity firm Thoma Bravo is offering 12.5 million ordinary shares. The IPO price will be between $ 19.00 and $ 21.00 per share.

This would allow the company to raise net proceeds of approximately $ 228.1 million at a midpoint of $ 20. This financing would reduce its debt: $ 778 million in the long term. Educational advisor Phil Hill wrote that “It is a decision by Bravo to manage the debt incurred by the company in connection with the purchase. “

Thoma Bravo will still own the vast majority of Instructure’s shares after this IPO, using a complex system of holding companies, stock splits and dilution plans.

The actual public offering would lead to an estimated increase of $ 250 million.

These offered shares only represent a small part of the total number of shares, however, and Thoma Bravo will keep the rest.

After the offer, Thoma Bravo will own around 87% of the shares. “Accordingly, we expect to be a “controlled company” within the meaning of NYSE corporate governance standards ”, the company said in the prospectus.

Instructure of Utah (NYSE: INST) expects to be assessed up to $ 2.91 billion, according to MarketWatch. In March 2020, private equity firm Thoma Bravo privatized Instructure in a deal valued at around $ 2 billion.

In the first three months of 2021, Instructure achieved revenue of $ 94.0 million and a net loss of $ 33.1 million, according to the filing.

The underwriters of the IPO have reserved 5% of the shares to be offered in the IPO to be sold to senior management of the company through a directed selling program.


[ad_2]

About Marjorie C. Hudson

Check Also

Google for Education partners with Instructure to simplify onboarding and expand digital classroom capabilities

Schools with Google Workspace for Education Plus can now integrate their Student Information System (SIS) …

Leave a Reply

Your email address will not be published.