Briefing

Cloudflare raises its share price range ahead of Friday IPO

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The cloud infrastructure and security company, co-founded by Saskatchewan’s own Michelle Zatlyn, is now expecting to raise US$490 million in its IPO, US$70 million more than it initially planned. That’s based on a share price increase from between US$10–US$12 to between US$12–US$14, bringing Cloudflare’s maximum value to US$4.2 billion. (The Logic)

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Talking point: The jump in share price signals the company’s increased confidence in what investors are willing to pay for it since filing its prospectus in August. That bucks the trend among other tech firms that have gone public recently or are planning to do so. Uber, for example, lowered its share prices ahead of its IPOs—its debut was panned as an upset, anyway. And, there are reports that WeWork may cut its valuation by as much as US$20 billion ahead of its forthcoming IPO. Pre-IPO share increases have also backfired, however: Lyft raised its share price ahead of going public in March, after which its stock stumbled, hitting an all-time low in early September.