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.
Thoma Bravo acquired Instructure in March 2020 and had operating margins of -36%. IPO a year later with + 31% operating margins. Why is there no mechanism for this creation of value to occur in public markets? Seems to be a ripe area for activism
– Viggy Krishnan (@viggy_krishnan) July 13, 2021