Marketing-tools firm SEMrush prices IPO at bottom-of-range $14 a share
- Online marketing-tools maker SEMrush Holdings (SEMR) priced its initial public offering late Wednesday at $14 a share -- the bottom end of the IPO’s expected $14-$16 range, although that still values the firm at about $2B.
- However, the firm also announced that it sold just 10M shares instead of the 16.8M that SEMR had originally offered.
- Boston-based SEMrush also granted underwriters the option to buy 1.5M additional shares for overallotments, down from the 2.52M previously planned.
- All in, the IPO should generate $140M for the firm less expenses, or $161M if underwriters exercise all overallotment options.
- The $14-a-share pricing should also value the company at about $1.95B to $1.99B, depending on whether underwriters exercise their overallotment options or not.
- SEMrush is scheduled to begin trading Thursday on the New York Stock Exchange.
- The firm describes itself as software-as-a-service company (SaaS) that helps businesses with “online visibility management.”
- It offers more than 50 tools to help companies with search engine optimization, content marketing, social media and more.
- SEMrush wrote in its S-1 filing with the U.S. Securities and Exchange Commission that “we enable companies globally to identify and reach the right audience for their content, in the right context, and through the right channels.”
- SEMR’s clients include large businesses like IBM, Nike, Procter & Gamble, Tesla and Walmart. All told, the firm had 404,000 clients and 67,000 paying customers in 142 countries as of Dec. 31.
- The company also reported a $7M net loss for 2020 on $124.9M of revenues, improving on 2019’s $10.2M of red ink on $92.01M in sales.
- Seeking Alpha contributor Donovan Jones recently analyzed SEMR’s S-1 and called the firm “well positioned in a growing industry with a strongly positive future outlook.”
