Enterprise software company Informatica valued at $7.5 billion in stock market performance

Oct 27 (Reuters) – Shares of Informatica Inc fell nearly 5% in their stock market return on Wednesday, hitting a valuation of $7.5 billion for the enterprise software company that has was privatized six years ago.

Shares of Redwood City, Calif.-based Informatica opened at $27.55. The company sold 29 million shares priced at $29 each, at the bottom of its price range, raising $841 million.

Founded in 1993, the company offers subscription-based cloud-based data management services and also helps automate tasks for more than 5,700 active customers, including the US Air Force, automaker Nissan, supermarket chain Kroger and biotech company Amgen.

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Informatica was taken private in 2015 for around $5.3 billion by a consortium including private equity firm Permira Advisers Ltd and the Canada Pension Plan Investment Board.

Informatica’s weak start in its second stint as a publicly traded company further underscores the waning appetite for IPOs, which have generally slowed in Q3 2021 from their blistering three-month pace previous ones. Read more

Although tech ratings remain investor darlings, their valuations have come under intense scrutiny.

The U.S. IPO market has also seen some recent misfires, with iFIT Health & Fitness Inc, owner of NordicTrack, and Allvue Systems Holdings halting their listings earlier this month, citing unfavorable market conditions.

Goldman Sachs & Co and JP Morgan are the lead underwriters for the IPO.

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Reporting by Manya Saini and Noor Zainab Hussain in Bengaluru; Editing by Ramakrishnan M. and Shounak Dasgupta

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