Thoma Bravo will still own the vast majority of shares in Instructure after this IPO, using a complex system of holding companies, stock splits, and dilutions plans. The actual public offering is roughly 12.5 million shares expected to price in the $19 – $21 per share range, leading to an estimated raise of $250 million. Those offered shares are a small part of the total shares, however, and Bravo will retain the rest.
Instructure / Canvas LMS Details Its IPO: A Valuation of $2.9 Billion Expected
IBL News | New York
Private equity firm Thoma Bravo is offering 12.5 million shares of its common stock. The IPO price will be between $19.00 and $21.00 per share.
This would allow the company to raise net proceeds of about $228.1 million at a $20 midpoint. That funding would help cut its debt: $778 million in the long term. Educational consultant Phil Hill wrote that “this is a move by Bravo to manage the debt the company took on as part of the purchase.”
After the offering, Thoma Bravo will own around 87% of the stock. “As a result, we expect to be a “controlled company” within the meaning of the corporate governance standards of NYSE,” said the company in the prospectus.
Utah-based Instructure’s (NYSE: INST) expects to be valued at up to $2.91 billion, according to MarketWatch. In March 2020, private equity firm Thoma Bravo took Instructure private in a deal valued at about $2 billion.
During the first three months of 2021, Instructure had revenue of $94.0 million and a net loss of $33.1 million, according to the filing.
The underwriters of the IPO have reserved 5% of the stock to be offered in the IPO to be sold to the senior leadership of the company through a directed sale program.
Thoma Bravo acquired Instructure in March 2020 and it had -36% operating margins. Taking public a year later with +31% operating margins. Why is there no mechanism to have this value creation occur in the public markets? Seems like a ripe area for activism
— Viggy Krishnan (@viggy_krishnan) July 13, 2021