The cybersecurity firm SecureWorks is planning an IPO, making it the first technology company to debut on any U.S. exchange in 2016.
The firm is owned by Dell's parent company Denali Holding Inc. and may begin marketing its decision to go public to investors after 11 April. SecureWorks is looking to trade on the Nasdaq under the ticker name “SCWX”
SecureWorks originally targeted its valuation at around $2 billion last summer. However, the firm now believes it will be valued lower as its rivals are trading down at 20 per cent or more. SecureWorks could also fall victim to the trend where private tech companies have been overvalued by investors. It differs slightly from those other companies due to the fact that it is part of Dell and was created during the last boom in the tech industry.
However, SecureWorks does not make a profit and the firm's losses have become almost as large as its revenue. In 2015, the firm made a total of $339.5 million in revenue. While this was a 30 per cent increase from the previous year, SecureWorks also had a net loss of $72.4 million which was twice as big as its loss in 2014.
During the summer of last year, the firm confidentially filed its IPO papers and disclosed its plan for an IPO in December.
SecureWorks offers a lot to set itself apart from its competitors but in a market devoid of other tech IPOs the company will surely face more scrutiny if it does decide to go public.