After filing an updated IPO prospectus on Friday, Atlassian founders Mike Cannon-Brookes and Scott Farquhar must now convince investors to snap up the 20 million new shares for between $US16.50 and $US18.50.
The company is looking to raise up to $US370 million in new capital, despite previously filing for $US250 million. At the upper end of the price range, Atlassian would be worth $US3.6 billion, up from $US3.3 billion in April 2014 when employees were allowed to sell shares to private investors.
While restricted from public comment, Cannon-Brookes and Farquhar will now go on the road to meet major investors in New York, San Francisco and Boston.
The tour of investors isn’t limited to newer, technology companies. Even Ferrari recently went on an IPO roadshow, which included hosting a lunch in the rootfop ballroom of a noted New York hotel.
Atlassian will be listing in a market that has cooled since the 55 tech IPOs last year. Only 22 technology companies have IPO’d this year, and have returned an average of 1.7%. This is despite the spectacular IPO of Square ten days ago, where shares closed up 45% on the first day.
Beyond the 20 million new shares, the underwriters, Goldman Sachs and Morgan Stanley, have an option to buy 3 million more shares. An existing shareholder, T. Rowe Price Associates, has indicated an interest in buying 4 million of the new shares.
But because of a dual-class share structure, Cannon-Brookes and Farquhar, who hold 67.2% of the total outstanding shares, will control 86.6% of the voting rights.