Still firmly in Big Mike’s clutches despite IPO
Dell Technologies is expected to hold almost three-quarters of the stock and because there are two types of share – class A and B, with B having 10 times higher voting power than A – will also possess about 96 per cent of the voting power.
The long-awaited Pivotal IPO has an implied valuation of $3.8bn if it shifts 37 million shares at that price point.
The S-1 form it filed in March lifted a veil on Pivotal’s annual revenues: showing $509m for FY 2017/18; $416m in 16/17; and $280.9m the year before. But the company also posted net losses for those years, of $163.5m, $232.9m and $282.7 respectively. It also noted that “as of February 2, 2018”, it had an accumulated deficit of $1.14bn. That said, profits are at $281m for FY 2018 – up from $181.9m in ’17 and $93.5m in 2016.
General Electric, an investor in Pivotal, is selling some of its holding, about 3.9 million shares, to raise $58m.
The cash raised will stay inside Pivotal and not be used to pay off Dell debt from its $67bn EMC acquisition, it told the SEC.
The major class A and B shareholders are Michael Dell, Dell Technologies, and EMC, each with 175,514,272 shares, and Silver Lake Partners Investment funds – which analysts are warning could hurt Pivotal’s stock price if it decided to sell any – with 131,306,110 shares. VMware (44,108,262), a GE affiliate (15,532,075) and the Ford Motor Company (17,516,709) each own more than 5 per cent of the shares.
The Reg is hearing from execs that the tech IPO pipeline is full to the brim, and more are expected later this year. ®