The first tech IPO of the year already looks like a bummer

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Business Insider

SecureWorks, the cybersecurity firm owned by Dell, is expected to IPO on Friday but at a much lower price than was initially expected.

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According to Dow Jones, SecureWorks is pricing its IPO at $14 a share, below the $15.50 to $17.50 range it had hoped to fetch in its filings two weeks ago.

That's a huge disappointment to the overall tech industry that's been closely watching SecureWorks' IPO process. There hasn't been a single tech company that's gone public this year, largely due to the investors' waning enthusiasm for money-losing companies, and SecureWorks' disappointing IPO could serve as a bellwether of things to come for the rest of the year.

SecureWorks generated $339.5 million in revenue last year, up from $262.1 million the year before. But that came at a net loss of $72.3 million, despite having gross profit of $155.7 million last year.

At $14 per share, SecureWorks would have roughly a $1.13 billion market cap.

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SecureWorks makes cybersecurity software that helps companies monitor their IT infrastructure to protect against hackers and malware. It is almost entirely owned by Dell, which bought it for $612 million in 2011.

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