Page 10 - bne_Magazine_May_2018_print

10 I Companies & Markets bne May 2018
Avast to enter London bourse in bid to raise up to $1bn
Jaroslav Hroch in Prague
Avast, which owns the popular consumer antivirus company AVG, will apply to list its shares on the London Stock Exchange in the hope of raising $200mn (CZK4.1bn) in primary proceeds from an IPO, the Czech- founded company announced on April 12.
The cyber security company hopes to get an additional $800mn in secondary sales, a well-placed source told Reuters, which would raise its market valuation to approximately CZK82bn ($4bn). The main aim of the listing is to get cash to pay down debts and finance growth.
“The company has grown amid a dramatic increase in the number and type of threats since it was founded in 1991,
and thanks to its ability to stay ahead of the bad guys,” CEO Vincent Steckler said in a statement. “A listing on the London Stock Exchange is a natural fit, providing us wider access
to capital markets and supporting the future growth of our business in the years ahead.”
www.bne.eu
Avast already tried to float its shares once before, on the US Nasdaq exchange in 2012, but the offer was pulled due to poor market conditions.
“The cyber security company hopes to get an additional $800mn in secondary sales”
BH Securities analyst Martin Vlcek said the fact that Avast now anticipates being included in the UK’s FTSE index could be a big plus, and that the timing is right. “The problems of the biggest companies in the sector like Facebook, Amazon or Alphabet is not affecting other technology companies, and the sector shows great promise for increased sales and profits from shares. So Avast can be a very interesting newcomer,” Vlcek said.