On Tuesday, Bentley Systems Inc reviewed the price range target for its upcoming initial public offering (IPO). With the new price target, the company’s valuation could increase to $5.49 billion.
On the 15th of September, the company published a press release to announce its IPO.
According to the report, Bentley Systems would be offering 10,750,000 shares of its Class B common stock. At that time, the targeted offering price was between $17 and $19 per share. Also, Bentley applied to list its shares under Nasdaq with the ticker symbol “BSY.”
Upon reviewing its IPO price range, Bentley Systems is now targeting each share between $19 and $21. This was revealed in a recent filing with the U.S. Securities and Exchange Commission (SEC) on the 22nd of September.
Still offering the 10.75 million shares as earlier planned, the company expects to pull in up to $225.7 million from the IPO.
As noted in the filing, the underwriters for the IPO include Goldman Sachs & Co. LLC, BofA Securities, and RBC Capital Markets. In addition, Baird, KeyBanc Capital Markets, and Mizuho Securities are acting co-managers for the proposed offering.
Bentley System Attempts IPO
Before now, Bentley attempted to go public in 2001. Again, there were plans to launch an IPO in 2015/2016. However, the company made little to no effort to actualize the plan. Instead, Siemens AG (ETR: SIE) funded the software company for expansion, investing $54 million to develop joint software.
Also, Siemens invested an additional $76 million in Bentley Systems for a minority stake in Bentley. This deal was sealed under a program to continue until Bentley is publicly traded.
On the 27th of August 2018, Bentley revealed that its strategic alliance with Siemens had been extended. Also, the joint investment initiative was extended by an additional €50 million to total €100.
According to a Bloomberg report, Siemens is considering acquiring Bentley Systems to become part of its digital industries division. As revealed by sources, the purchase, if successful, would mark the beginning of Siemens’ involvement in software.
Since the beginning of the year, a large number of companies have filed for IPO in the U.secS. A definitive data showed that as of the 28th of August, 17 filings of registrations statements went public in the week.
The head of equity markets for the Americans at Bank of America Jim Cooney said that the U.S. market would make history with the IPO activities.
Furthermore, Bentley Systems mentioned the pandemic’s effect on the company:
“The impact of the pandemic on our financial performance has been modest; our revenues have continued to grow given the mission critical nature of our solutions.”
Although the company has not expressly stated this, the IPO is likely to raise money for Bentley Systems. The decision to go public may also be a move to give employees better benefits for time spent in the company.