Software-as-a-service (SaaS) company Freshworks on Wednesday announced that the company has priced its initial public offering at $36 per share. At the current price, it may raise around $1.03 billion from the offering, taking its valuation to over $10.13 billion.
The shares are expected to begin trading on the Nasdaq Global Select Market under the symbol “FRSH” on September 22, 2021, and the offering is expected to close on September 24, subject to customary closing conditions. In addition, Freshworks has granted the underwriters a 30-day option to purchase up to an additional 28.5 million shares of Class A common stock at the initial public offering price less underwriting discounts and commissions.
Freshworks will become the first Indian-origin software products startup to list on the US stock exchanges. Morgan Stanley, J.P. Morgan and BofA Securities are acting as lead book-running managers for the offering. Jefferies and Barclays are acting as book-running managers for the offering. Baird, Canaccord Genuity, JMP Securities, Needham & Company, Wolfe | Nomura Strategic Alliance, Oppenheimer & Co., Piper Sandler, Raymond James, AmeriVet Securities, CastleOak Securities, L.P., Ramirez and Co., Inc., R. Seelaus and Co., LLC, are acting as co-managers for the offering.
Freshworks is one of the earliest success stories of Indian startups in the software-as-a-services (Saas) segment. The much-awaited IPO also grabbed eyeballs when its founder Girish Mathrubootham thanked actor Rajnikanth in the initial documents for listing in the US market.
Mathruboothamm, said: “The code name of our IPO was Project Superstar, named after the most successful movie star from Tamil Nadu, Rajnikanth. I want to express my love and gratitude to him for being my maanaseega Guru.”
The company was founded by Mathrubootham and Shan Krishnasamy as Freshdesk in 2010 and was rebranded as Freshworks in 2017. The investors in the company include Sequoia Capital, Accel and Tiger Global.