On Tuesday, Palantir Technologies, a tech firm, had revealed their registration documents for having public stock listing at the New York Stock Exchange. This gives a comprehensive view for the first time to the inner financial scenario of the company.
With this public debut, there are other initial filings of software companies coming with two public Silicon Valley peers, Slack and Spotify, for a direct listing. There will be no raising of funds through a listing of Palantir’s, and no new share will be there for sale. Instead, existing investors can sell their shares.
This 17-year-old company, which is cofounded by Peter Thiel, had tested by Wall Street’s appetite for the stocks in tech. This has happened even the time when the initial public offerings of tech are red hot. In the history of Palantir, there is no profitable year, and there is a net loss for roughly about $580 million in the last two years.
The revenue of the company in 2019 was around $742.6 million, which increased by 25% from previous years. Till April, it was expected that the company would hit the revenue of $1 billion as per Bloomberg’s report.
It has been said that the business’s broader momentum is the result of its software platform’s strength. The software needs that work has never been much.
There is a high compensation also been revealed by the prospectus for three executives of Palantir’s. More than $12 million as salary and stock option last year for Alexander Karp, co-founder, and CEO, while $16 million for Steven Cohen, President and $26 million for Shyam Sankar, Chief operating officer. Thiel is just a chairman to the board of directors and not operationally involved at Palantir.
The founders of Palantif’s maintain the stock structure as they want to have a tight grip for the firm having 49.99999% voting power to maintain ownership level in the company.
The stocks of the company will be expected to list on September 24 at NYSE with the PLTR ticker trading of share. The existing shareholder, which includes private investors and employees, could able to sell a certain unspecified portion of shares they hold during that point.
The insider selling lock-up, which is like direct selling, will be lifter after three days of December Quarter Palantir reports earnings, which could be there in January.