Finance executives at Tokyo-based wealth management company Akita Michinoku Capital have commented on Palantir Technologies Inc. preparing to go public through a direct listing in September.
The Plantir listing has been long-awaited, and with the company opting for a direct listing, it means current investors in the firm will be able to sell their shares on the first day of trading rather than waiting for the lock-up period to expire, which is expected in a traditional initial public offering. Also, unlike a regular IPO, the company will not raise capital through a direct listing.
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“At this stage, Plantir is aiming for a direct listing by late September however the company may still change its plans,” commented Oliver Wright, Director of Corporate Equities at Akita Michinoku Capital.
“Palantir is aiming to raise $961 million. It has already managed to secure $550 million which includes a $500 million investment from Sompo Japan Nipponkoa Holdings and $50 million from Fujitsu,” Oliver added.
Plantir, which sells data analysis software used by governments and large corporations around the world, was founded in 2003 by billionaire Peter Thiel and a group of business partners including Chief Executive Officer, Alex Karp. Palantir achieved a valuation of $20 billion in 2015, though in recent years stockholders of the company have been selling blocks of shares for a lot less.
“Plantir is used by law enforcement and government agencies to collect and scan for data on citizens to combat crime, hunt for terrorists and, more recently, monitor the spread of Covid-19. The virus has boosted business with companies using its products to better determine how they reopen,” commented Martin Thornton, Head of Corporate Trading at Akita Michinoku Capital.
Palantir has proven controversial for the way its tools have been used to enable surveillance and compromise privacy by some. In particular, its use by police and immigration officials has triggered multiple protests.
Headquartered in Palo Alto, California, the company have long resisted a public offering to avoid being viewed as a consultancy and remain out of the public eye while it reduced its reliance on engineers customizing software for each client and worked toward profitability, according to data collected by Akita Michinoku Capital.
In July, Plantir said in a statement that it had filed with the SEC for a “public listing” of its stock, a term that has been used by other companies looking to pursue a direct listing rather than an IPO.
Funders of Plantir include Founders Fund, the venture capital firm which Thiel also founded. Other investors include BlackRock Inc., Morgan Stanley and Tiger Global Management.
