The first tech IPO of the year already looks like a bummer

Business Insider

SecureWorks, the cybersecurity firm owned by Dell, is expected to IPO on Friday, but at a much lower price than was initially expected.

According to Dow Jones, SecureWorks is pricing its initial public offering at $14 a share, below the range of $15.50 to $17.50 it had hoped to fetch in its filings two weeks ago.

That’s a huge disappointment to the overall tech industry, which has been closely watching SecureWorks’ IPO process.

There hasn’t been a single tech company that’s gone public this year, largely because of investors’ waning enthusiasm for money-losing companies, and SecureWorks’ disappointing IPO could serve as a bellwether for the rest of the year.

SecureWorks generated $339.5 million in revenue last year, up from $262.1 million the year before. But that came at a net loss of $72.3 million, despite having gross profit of $155.7 million last year.

At $14 a share, SecureWorks would have roughly a $1.13 billion market cap.

SecureWorks makes cybersecurity software that helps companiesmonitor their IT infrastructure to protect against hackers and malware. It is almost entirely owned by Dell, which bought it for $612 million in 2011.