Security specialist Wiz is considering selling a package of existing shares. The intention is to raise about 20 billion dollars (nearly 18 billion euros). The underlying motivation may be to eventually go public.
Existing shareholders could sign up for between 500 million and 700 million dollars, Bloomberg writes. In addition to the stock sale, Wiz may also want to raise money directly from investors. During the process, Wiz would ostensibly receive guidance from private investment firms G Squared, Thrive Capital and Lightspeed Venture Partners.
According to sources, the terms of the share sale could still change, or the deal could still fall through. Wiz and all other potentially involved parties refrain from commenting on the rumors.
Acquisition offer by Alphabet turned down
Wiz’s move is not entirely remarkable, as the security specialist had previously expressed positive views about a possible IPO. These statements came from the company after the cybersecurity specialist ended negotiations over a possible 123 billion dollar acquisition by Alphabet, Google’s parent company.
Wiz CEO Assaf Rappaport would have seen more opportunities for an IPO, once the company achieves 1 billion dollars in annual revenue. In addition, the security company may have dreaded the lengthy legislative and regulatory process associated with such an acquisition and the period thereafter.
Wiz itself did acquire companies recently. In December 2023, the security specialist acquired Raftt, followed by Gem Security in April of this year.
Read more: Wiz walks away from 23 billion dollar takeover by Alphabet