Freshworks Inc. (NASDAQ:FRSH) has raised its pricing for its upcoming IPO, cementing it as one of the largest of this year. In its most recently edited SEC filing, Freshworks indicated that it planned to
Freshworks Is Not Worth Its Elevated IPO Price
Summary
- Software company Freshworks Inc. updated its pricing information, indicating that it plans to raise nearly $1 billion and attain a valuation of nearly $10 billion.
- Freshworks faces tough competition in the CRM SaaS market in Salesforce and other larger companies, but it has a unique niche and shown an ability to grow.
- The company’s finances are in good shape, with rising revenue and a potential path towards profitability.
- Unfortunately, the company is extremely expensive given its size, and will likely be even more so in any post-IPO bump.
- Investors should probably pass on Freshworks at the present or elevated price, though they may reconsider after the lock-up period has expired.
I'm an independent investor with experience trading forex, cryptocurrency and stocks. I'm particularly interested in tech and biotech stocks with a long term growth philosophy. Originally from the UK, I worked for Barclays bank in London for 10 years before moving to the East coast of England. I currently run several online businesses while writing about investment as a hobby. None of the views I express should be taken as investment advice and is purely my own musings on a stock's investment potential.
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