initial public offerings (IPOs) trading on American exchanges

Thursday, November 19, 2020

Telos (TLS) began trading on the Nasdaq on Thur 19 Nov 20

  • Telos provides cybersecurity services mainly to the U.S. government, including the CIA and the Defense Department, as well as to large businesses like (AMZN), Microsoft (MSF), and Citigroup (C). Nearly 94% of Telos revenue in 2019 came from government contracts or subcontracts, its prospectus said.
  • Telos swung to a profit this year. The Ashburn, Via., company reported $4.1 million in income for the nine months ended Sept. 30 on $135 million in revenue, the prospectus said. This compares with a loss of $1.2 million on $112.7 million in revenue for the period in 2019. 
  • The company employs 808 employees, but has only eight sales people. 

Telos upsized and priced previously announced IPO of 14,968,859 shares of common stock at a price of $17.00 per share

Shares of Telos, one of the first companies to tap the public equity markets since the election, surged in their first day of trading.

The stock opened at $21.90 and hit a high of $22.20, before closing at $20.29, up 19.35%.

Telos (ticker: TLS) is one of four companies to make their market debut on Thursday: Olema Pharmaceuticals (OLMA), NeoGames (NGMS), and Yatsen Holding (YSG) also began trading. The group is the first to go public via traditional initial public offerings since the Nov. 3 presidential election.

“It’s been a long time in the making, and we are really happy to be here,” said John Wood, chairman and CEO of Telos. “We had a tremendous amount of demand. We’re very pleased with the market’s response to our story.”

Telos raised $254.5 million after boosting the size of its deal. The company sold 14,968,859 shares at $17 each, up from 12,352,942 shares at $16 to $18 it had planned to offer. Underwriters on the deal include B. Riley Securities, BMO Capital Markets, and Needham & Co.

With 59.84 million shares outstanding, Telos now has a $1.16 billion market capitalization.

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