Domo Adds A Scary Provision To Its Revised IPO Filing; Regardless Of Price, It's Not A Buy

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About: Domo, Inc. (DOMO), Includes: DATA, IBM, ORCL, SAP
by: Virginia Backaitis
This article is exclusive for subscribers.
Virginia Backaitis
Momentum, IPOs, Software, Tech
Summary

One-time unicorn Domo Technologies filed a revised S-1 on Monday offering 9.2 million shares priced at $19-22 per share, suggesting a $189 million IPO.

If the shares sell at mid-point, Domo will be valued at $512 million, a huge haircut from the $2.3 billion valuation it enjoyed on private markets.

After the IPO, Domo founder Josh James will control all of the Class A stock representing 86% percent of the voting power. Investors will be powerless over his poor judgement.

Last week, Domo severed ties with companies owned by James and family, which were selling in excess of $2.4 million worth of goods and services to the company.

Domo has now decided to reserve 7.5% of its Class B common stock to sell to certain individuals, including to friends and family of James, at the IPO price.

On June 15, Domo also introduced a 15-for-1 reverse stock split of its common and convertible preferred stock, leaving early investors with 1 share for every 15 they once owned.

Domo Technologies (DOMO), a Silicon Slopes, Utah-based cloud business intelligence (BI) and analytics software provider, filed a revised S-1 on Monday, pricing the 9.2 million shares it intends to offer at $19-22 per