Technology consultancy firm Thoughtworks Holding aims to raise net proceeds of $284.2m in an initial public offering (IPO), projecting a $6.38bn valuation.
The technology consultancy firm plans to list on the NASDAQ under the symbol “TWKS”.
Thoughtworks filled in the blanks on its upcoming IPO in a filing Tuesday with the US Securities and Exchange Commission. The document did not set an offering date.
A new name
The Chicago-based technology consultancy will rebrand itself as Thoughtworks from Turing Holding Corp. when the IPO is complete.
The company expects to sell up to 36.8 million shares be priced between $18-$20 per share. The prospectus assumes an offering price of $19.00 per share.
Thoughtworks will sell as many as 16.4 million shares. Additional selling shareholders are offering 20.4 million shares.
Apex Partners LLC will own about 67% of outstanding common stock. Goldman Sachs. J.P. Morgan and Credit Suisse are the lead bookrunners.
Thoughtworks plans to use money from the IPO to increase capitalisation and financial flexibility and to create a public market for its common stock.
Improving revenue and profit
Thoughtworks generated net income of $79.3m on revenue of $803.4m last year compared to 2019’s after income of $28.4m on revenue of $772.2m. Adjusted EBITDA for 2020 was $153.2m in 2020 compared to $107.1m in 2019, representing an adjusted EBITDA margin of 19.1% and 13.9%, respectively.
At 30 June, Thoughtworks had cash and cash equivalents of $216m and long-term liabilities of $812.6m.
The company is going public during an upswing in IPOs. The Renaissance IPO ETF has jumped 10.4% within the last three months while the S&P 500 is up 7.3%.