IPO Roundup: PagerDuty files confidentially for IPO, while New Fortress dials down IPO terms

The long US government shutdown has undoubtedly spooked companies looking to raise money in the equity markets. Reopening the government is a heavy lift, and companies like PagerDuty and New Fortress Energy are finessing their paperwork to join the IPO queue as the Securities and Exchange Commission sifts through applications.

PagerDuty Inc, which is a cloud computing company that produces a software-as-a-serve (SaaS) incident response platform for IT departments, has filed confidentially for an initial public offering.

The San Francisco-based company selected Morgan Stanley to lead the offering, reported Bloomberg, while citing two people who were familiar with the matter who asked not to be identified.

READ: IPO Roundup: New Fortress Energy, Pivotal Acquisition to tap capital markets despite US government shutdown

Founded in 2009, PagerDuty helps alert coders to crashes and other technical problems when they arise.

Meanwhile, New Fortress LLC late Friday set new terms for its initial public offering, saying it would offer 20 million shares at $15 a share.

The company last week indicated it would sell 22.2 million shares in a range of $17 and $19 a piece. 

New Fortress Energy was founded by Wesley Edens, the co-owner of the NBA’s Milwaukee Bucks. Edens is also the co-CEO of private equity firm Fortress Investment Group, which famously dove back into subprime lending in 2010, just a few years after the financial crisis.

According to the SEC filing, New Fortress Energy posted a loss of $43.4 million in the first nine months of 2018, which was a bigger loss than the first three quarters of 2017.

Revenue was up just 12.3% from a year ago as well. The company is also saddled with $122 million in debt.

Investors may look beyond the shaky financials as New Fortress Energy does have the backing of the Fortress Investment Group, which is the company’s majority owner.

New Fortress has applied to list on the Nasdaq under the symbol NFE. Underwriters include Morgan Stanley, Barclays, Citigroup, and Credit Suisse.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive 

Story by ProactiveInvestors