|Full story at wsj.com|
Updated April 1, 2016 4:52 p.m. ET
A cybersecurity firm owned by Dell Inc. is seeking to end the technology IPO drought.
SecureWorks Corp., owned by Dell’s closely held parent, Denali Holding Inc., is seeking to launch its initial public offering in April, people close to the deal say. The company could begin its “roadshow” to market the stock to investors during the week of April 11, the people said. The shares are expected to trade on Nasdaq under the symbol “SCWX”, according to a previous securities filing.
But in one respect it is similar: SecureWorks doesn’t make a profit.
In fact, the company’s losses have been swelling alongside its revenue. For the fiscal year ended Jan. 29, SecureWorks generated $339.5 million in revenue, up 30% from the previous year, while its net loss of $72.4 million was nearly twice as wide, according to a securities filing.
The company’s expanding losses could cause concern for investors, who have been increasingly demanding a clear path to profit.
SecureWorks filed IPO papers confidentially over the summer, as The Wall Street Journal reported in October, and publicly disclosed the plan in December. Bank of America Corp. and Morgan Stanley are lead underwriters on the deal.