UK cyber-firm Darktrace cuts valuation of its London IPO – Sky News By Reuters

(Reuters) – British cyber-security firm Darktrace is cutting the valuation of its London stock exchange listing as it adopts a cautious approach aimed at avoiding a repetition of Deliveroo’s disappointing public debut, Sky News reported on Sunday.

Darktrace is moving towards a price range that will value it at between 2.4 billion pounds ($3.33 billion) and 2.7 billion pounds, Sky News said.

An official announcement from Darktrace is expected on Monday, according to Sky news.

Darktrace did not immediately respond to a request for comment.

The firm, backed by tech entrepreneur Mike Lynch, said last week it planned for a $4 billion premium listing on the London Stock Exchange that would take place in early May.

Darktrace, which counts Rolls-Royce (LON:RR) and Coca-Cola (NYSE:KO) among its customers, aims to raise new funds to accelerate product development and strengthen its balance sheet.

A source familiar with the transaction told Reuters earlier this year the company would target a 3 billion pound valuation.

The technology company, founded in 2013 in the university city of Cambridge, uses AI to understand IT networks and detect attacks by identifying unusual behaviour.

Deliveroo’s flotation in March was supposed to be London’s debut of the decade, but the stock plunged 30% on the first day, wiping more than 2 billion pounds from the company’s initial 7.6 billion pound valuation.

($1 = 0.7209 pounds)