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Peter Thiel-backed Palantir to go public through direct listing

Credit: REUTERS/ARND WIEGMANN

Data analytics firm Palantir Technologies Inc on Tuesday filed to go public through a direct listing, setting the stage for what is expected to be one of the most closely watched market debuts of a Silicon Valley tech startup in years.

Adds details on listing, background

Aug 25 (Reuters) - Data analytics firm Palantir Technologies Inc on Tuesday filed to go public through a direct listing, setting the stage for what is expected to be one of the most closely watched market debuts of a Silicon Valley tech startup in years.

The Peter Thiel-backed firm had confidentially filed to go public in July.

As opposed to a traditional initial public offering, a direct listing does not raise fresh funds. In a direct-listing model, existing investors monetize their shares.

According to its filing, Palantir reported a net loss of $580 million in 2019, about the same as its loss in 2018. The company's revenue came in at $742 million in 2019, compared to $595 million in 2018. (https://bit.ly/2EzduAK)

For the first six months of 2020, Palantir posted revenue of $481 million, up 49% from the year-earlier period. In June, Reuters reported, citing sources, the company expects revenue in 2020 to grow to $1 billion.

A string of successful IPOs is paving the way for Silicon Valley firms, concerned about the economic fallout from the COVID-19 pandemic, to follow suit.

Palantir's filing to go public comes in the middle of a busy week for tech IPOs. A slew of high-profile software companies such as Snowflake, Asana, JFrog and Unity Software have already filed to go public this week.

Palantir, co-founded in 2004 by billionaire Peter Thiel, specializes in analyzing large quantities of data. Its customers range from global banks to the U.S. government and the Central Intelligence Agency. The company's technology aided the U.S. government's successful search for Osama bin Laden, according to multiple media reports.

(Reporting by Anirban Sen and Niket Nishant in Bengaluru; Editing by Shounak Dasgupta)

((Anirban.Sen@thomsonreuters.com; (within U.S.+1 646 223 8780; outside U.S. +91 80 6182 3583); Reuters Messaging: Twitter: @asenjourno))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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