Goldman Sachs-backed ON24 seeks US$2.22 bil valuation in IPO

Goldman Sachs-backed ON24 seeks US$2.22 bil valuation in IPO
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BENGALURU (Jan 25): Goldman Sachs Group Inc-backed webinar marketing platform ON24 Inc is aiming for a valuation of about US$2.22 billion in its initial public offering (IPO), as it looks to cash in on continued investor appetite for tech listings.

ON24, which allows people to create webinars and host virtual events on its platform, said on Monday that it would sell about 8.6 million shares priced between US$45 and US$50 apiece, looking to raise up to US$430 million at the upper end of the range. 

ON24's IPO comes as US capital markets gear up for another banner year for stock market launches.

The company, which lists SAP SE, IBM, Microsoft Corp and General Electric Co as customers on its website, expects to post net income in the range of US$17.8 million and US$20.3 million for the year ended Dec 31, 2020.

ON24 said "one or more" funds affiliated with US investment firm Tiger Global Management have indicated an interest in buying up to an aggregate of US$75 million in shares in the offering.

Goldman Sachs invested US$25 million in ON24 in early 2019. 

Goldman Sachs & Co LLC, JP Morgan Securities LLC and KeyBanc Capital Markets are lead underwriters for ON24's offering.

The San Francisco-based company will list its stock on the New York Stock Exchange under the symbol "ONTF".