Kaltura, an Israeli startup which provides live and on-demand video SaaS solutions, has upgraded its expectations for its initial public offering. The company now says that it expects a $2 billion valuation once it holds an IPO on the NASDAQ, doubling the previous estimate of just $1 billion made only a few weeks ago. Its will be listed under KLTR.
How quickly things change. Some of this has to do with the passage of America’s $1.9 trillion Coronavirus stimulus package. It also has to do with little expectation for higher interest from the Fed any time soon. Higher interest rates always mean a drop in the stock market. When rates go up people will move their money to bonds from stocks because they are a safer bet.
However, some observers see the stock market as too overvalued and see inflation on the horizon. So if there is to be some sort of correction in the markets soon Kaltura’s current investors had better hope that their IPO comes before it.
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Previously Kaltura expected to raise just $100 million in its IPO. Now he company plans to raise $244-278 million. The underwriters will have the option to buy shares worth $49-56 million. Shares are expected to sell at 14-$16.
Kaltura provides live and on-demand video SaaS solutions to thousands of organizations around the world, engaging hundreds of millions of viewers at home, at work, and at school. This is especially important during the Coronavirus crisis as the shutdowns have required countless people to work remotely. And with schools closed kids are learning from home.
The company expects to have 123.1 million shares outstanding after its IPO is completed. Goldman Sachs and BofA Securities are the lead underwriters. Kaltura’s existing shareholders will sell shares worth $85-98 million.
Founded in 2006 by its President Michal Tsur and CEO Ron Yekutiel, Kaltura offers a video platform, video management, video publishing, video streaming, interactive video, media management, media distribution, video portals, video players, video solutions, online video, mobile video, video conferencing, video communication, online meetings, meeting solutions, webinars, town halls, lecture capture, cloud tv, OTT TV, video cloud, video platform as a service, media services, vpaas, podcasting, and video messaging services.