Private software company Boise Clearwater Analytics received a huge boost when its initial public offering debuted on the New York Stock Exchange on Friday.
Clearwater shares opened 32% more, at $ 23.75, than the IPO price of $ 18 per share. This led to a valuation of the company at $ 5.5 billion.
Previously, private equity firm Welsh Carson Anderson & Stowe, the majority owner of the company, expected an IPO price of just $ 14 to $ 16 per share.
“The stock is doing well at the opening,” CEO Sandeep Sahai told the Idaho Statesman by phone from the NYSE, where 100 employees from Boise and other offices joined him for the announcement. “They’ve put together a spectacular list of investors.
The shares, sold under the ticker symbol CWAN, hit a high of $ 26.74. Friday afternoon they were trading at $ 25.78.
The company, which makes software that helps companies manage their investment portfolios, sold 30 million shares on Friday and raised $ 540 million.
Prior to the offer, Sahai and other executives met with potential investors to pique their interest.
“We talked about our home in Boise and how proud we are of it,” he said. “I think it has rubbed off on investors to see how passionate we are about what we are building.”
The Clearwater Building at 777 W. Main St., a nine-story building adorned with the company logo, this is probably how Clearwater is better known to most Boiseans. It has been the headquarters of the company since 2016.
Founded in 2004 by Doug Bates and brothers Dave and Michael Boren, Clearwater is now controlled by Welsh, Carson, Anderson & Stowe, a New York buyout company that took a majority stake in 2016.
The company said revenues for its more than 1,000 customers in 29 countries grew 21% between 2019 and 2020, from $ 168 million to $ 203 million. Fifty of its blue chip clients, including insurance companies, asset managers and large corporations, each accounted for $ 1 million or more in annual revenue as of June 30, 2021, according to the filing.
Clearwater has 1,259 employees, more than half of whom, 652, are in Boise. Another 180 are located in other parts of the United States, and there are over 400 combined in Noida, India, and Edinburgh, Scotland.
While many private companies go public via an IPO to raise funds, Sahai said that was not the case for Clearwater.
“We wanted to be a company that will lead in the west of the country,” he said. “Then we wanted to lead in America, all over the United States, but now we want to lead globally. “
When Clearwater is looking to add customers in Europe and Asia, it’s more difficult, Sahai said, because the company isn’t as well-known there. It is the same when she tries to attract new employees abroad.
Going public on the stock market will make that job easier, he said.
“We have a lot of customers around the world who need our software,” Sahai said. “We are going to go ahead and try to capture as much market as possible.”
The cash injection will allow the company to assess the acquisition of other companies as it expands, Sahai said, and will also allow better compensation for the company’s employees.
“Most companies like ours now realize that if employees are excited and engaged, they will serve your customers really, really well,” Sahai said.
About 200 employees have ownership options in Clearwater, he said, and that will now increase.
“All of the Clearwater employees… they’re all going to have shares in the company,” Sahai said.
Although looking to grow its business globally and grow, Clearwater is “nowhere,” the CEO said, and plans to continue to have half of its workforce based in the United States. Boise area.
“As we open offices, as we expand in Boise, we can do something in Eagle or something… a bit far from downtown,” Sahai said. “It would be mainly for commuters. Not everyone is a fan of travel.
This story was originally published September 24, 2021 11:58 am.