Sumo Logic Prices Its IPO at $22 a Share, Above the Expected Range

(Barrons) – Sumo Logic priced an initial public offering of 14.8 million shares at $22 late Wednesday, the third venture-backed software company to list this week—and the third to price above the anticipated range. Sumo had estimated the price at between $17 and $21 a share.

After the offering, Sumo will have about 98.7 million shares outstanding, giving the company a market cap at the offering price of $2.2 billion.

There were two previous blockbuster deals this week. Snowflake (SNOW) priced at $120 a share, opened for trading at $245, and closed its first day as a public company at $253.93. JFrog (FROG) priced an offering at $44 a share, opened at $71.27, then eased back to $64.79.

Based in Redwood City, Calif., Sumo is a real-time analytics software company competing with companies such as Splunk (SPLK) and Elastic (ESTC). Sumo had revenue for the six months ended July 31 of $96.6 million, up 38%; revenue for the January 2020 fiscal year was $155 million, up 50%.

Sumo Logic raised $340 million in venture capital, and was last valued at $1 billion in the private market, according to CB Insights. Greylock will own about 19% of the company after the offering. Other venture investors include Sapphire Ventures, Accel, Institutional Venture Partners, DFJ, Sutter Hill Ventures, Sequoia, Franklin Templeton, Battery Ventures, and Tiger Global.

Sumo noted in the prospectus that Tiger Global expressed an interest in buying up to 10% of the shares in the offering. Leading the deal were Morgan Stanley, J.P. Morgan, RBC Capital, and Jefferies.

Sumo will list on Nasdaq with the symbol SUMO.

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