Darktrace is a British leader in the cybersecurity market. The technology platform was founded in 2013 by University of Cambridge mathematicians and uses artificial intelligence (AI) to identify cyber threats within their clients’ software. Among these clients are Coca-Cola, Rolls-Royce and the NHS. Darktrace is planning to float its shares on the London Stock Exchange at the end of April 2021, so read on to discover how to get involved in Darktrace’s IPO and how to trade on newly-listed Darktrace stock through our online trading platform.
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Darktrace is due to IPO at the start of May, although its planned ticker has not yet been announced. IPOs don’t usually go live at the start of the trading session as the exchange needs to undertake a price discovery phase to calculate the opening price. Therefore, look out for Darktrace’s IPO going live a couple of hours into the UK trading session on the day.
Darktrace’s IPO is expected to bring the company a valuation of around £3bn. The company will issue £250m in new and existing shares to investors, where it initially plans to float at least 20%, with an option to release a further 15% of shares to the market afterwards. More accurate figures and an estimated share price will be revealed closer to the IPO date. It is reported that Darktrace may be seeking a lower valuation of around £2.4bn and £2.7bn, in order to ensure a stronger after-market trade. This valuation cut may be a cautious response to other recent stock market debut flops on the LSE.
Between 2018 and 2020, Darktrace’s annual revenue has grown from around £57.7m to £144.8m, although it hasn’t yet made a profit on a pre-tax or operating basis. The company has seen client numbers increase from around 1,600 to 4,700 in a similar time period. Darktrace’s listing on the stock market may also raise the question of inclusion in a FTSE-based stock index.
Darktrace’s largest shareholder is Invoke Trust, which is owned by entrepreneur Mike Lynch, who is recently facing allegations of fraud in the US on behalf of his company Autonomy. Darktrace has denied any involvement of Lynch within day-to-day operations and the company appears confident that his legal proceedings won’t affect its upcoming IPO or overall performance. Traders should take these factors into consideration when opening positions on a potentially risky company.
A unicorn company is described as a privately held or start-up company that has a valuation of over $1bn. In 2018, Darktrace reached a value of $1.65bn (£1.2bn), therefore giving it unicorn status in the UK.
Darktrace is a leader in the cybersecurity market and therefore, the company has a number of competitors. Below are some of Darktrace’s top competitors that are available to trade on our Next Generation platform while you wait for the company to complete the IPO process. These all offer similar services and software protection.
Read more about trading on other popular cybersecurity stocks >
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Register for a live account now to start trading on Darktrace’s IPO. Our derivative products include spread betting and CFDs, which you can use to open buy or sell positions on Darktrace stock after the company has publicly listed. Spread betting is tax-free in the UK and you don’t pay stamp duty on share CFDs**.
Darktrace’s decision to reject a US-based listing could be considered as bold by some, as the London Stock Exchange has witnessed various flops in recent months. However, the company is hoping that its strong fundamentals and background will help it to succeed and, in turn, bring back hope for the UK’s tech sector.
Follow our news and analysis section, which is updated daily with insights into the financial markets, including trader behaviour and sentiment. Furthermore, once Darktrace’s shares are listed on our platform, you can use our Morningstar equity research reports and Reuters news feed to delve deeper into specific market analysis.
How can I buy shares in Darktrace?
With ALFATRADING-MARKETS, you do not buy shares outright but instead speculate on the price movements of the underlying asset through spread bets or contracts for difference (CFDs). For an overview of the differences between products and how to get started, consult our guide on spread bets vs CFDs.
How can I get notifications about Darktrace’s IPO?
You can choose to receive notifications about Darktrace’s IPO by setting up calendar and news alerts to stay up to date with the situation. When the share has gone live on our platform and is available for trading, you can then set price and execution alerts to monitor your trades. Find out more about our types of trading alerts.
What is the margin rate for Darktrace?
Margin rates for shares on our platform start at 20%, meaning that you can trade with a leverage ratio of 5:1. Read more about our share market details.
Will Darktrace have a successful IPO?
Darktrace has an estimated valuation of £3bn, but this valuation and its subsequent share price upon listing aren’t guaranteed to increase. IPOs can start trading below their suggested share price if investors think that the company is overvalued, therefore, it is important to always conduct your own risk-management strategy when opening positions on companies with unknown fundamentals.
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**Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.
Disclaimer: ALFATRADING-MARKETS is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by ALFATRADING-MARKETS or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
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