(Bloomberg) -- Freshworks Inc. is considering pricing its initial public offering above a marketed range that it had elevated earlier this week, according to a person familiar with the matter.
The company may sell the shares on Tuesday for $36 each after marketing 28.5 million of them for for $32 to $34, said the person, who asked not to be identified because the information wasn’t public yet. In what was already set to be one of the largest IPOs on a U.S. exchange this week, Freshworks on Monday had lifted the planned range from $28 to $32.
At $36 a share, Freshworks would raise about $1 billion and have a market value of $10 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission. Accounting for employee stock options and restricted stock units, the company would have a fully diluted value of more than $11 billion.
A representative for the company said the IPO pricing hadn’t been completed yet.
The potential competitor to far larger Salesforce.com Inc. was valued at $3.5 billion in a 2019 funding round.
Freshworks boosted revenue about 40% last year after the coronavirus pandemic prompted businesses to go digital, and sales continue to grow in the first half of 2021 while its net loss shrank.
Now with 52,500 customers, saw its revenue grow in the first six months of this year to $169 million, up from $110 million in the first half of 2020. Its net loss shrank to $9.8 million from $57 million from a year ago, according to its filings.
Freshworks was founded in India and moved to Silicon Valley to be closer to customers. Now based in San Mateo, California, the company retains a substantial workforce in the southern Indian city of Chennai. In its filings with the U.S. Securities and Exchange Commission, founder Girish Mathrubootham likened Freshworks software to the iPhone, saying businesses shouldn’t have to rely on multiple tools to engage with customers.
Affiliates of Accel India and others of Tiger Global Management each control more than a quarter of the company’s Class B shares.
The IPO is being led by Morgan Stanley, JPMorgan Chase & Co. and Bank of America Corp. Freshworks shares are expected to begin trading Wednesday on the Nasdaq Global Select Market under the symbol FRSH.
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