SecureWorks plans to offer 9 million shares in an upcoming initial public offering (IPO) at a price between $15.50 and $17.50 per share, according to an S-1 registration statement filed witht the U.S Securites and Exchange Commission (SEC) on Monday.
Combined with the underwriter’s option to purchase up to 1,350,000 additional shares, the IPO could net the company upwards of $181 million.
If priced at the high end of its range, the wholly-owned subsidiary of Dell would have initial market cap of nearly $1.5 billion, according to The Wall Street Journal.
Atlanta, Georgia-based SecureWorks said it had $262.1 million in revenue for fiscal 2015, incurring a net loss of $38.5 million for the period. For the first nine months of fiscal 2016, revenue was $245.4 million, with a net loss of $57.5 million.
As of January 29, 2016, the company had 4,200 clients across 59 countries, with its revenue primarily derived from managed security and threat intelligence solutions.
Buried inside the company’s S-1 filing, SecureWorks disclosed that 12 percent of its revenue came from Bank of America, which the company said was its largest client. The company also shared some of the risks associated with the large account.
“Our business, financial condition and results of operations could suffer if Bank of America were to terminate or significantly curtail its purchases of our solutions, if we were unable to sell our solutions to Bank of America on terms substantially as favorable to us as the terms under our current agreement, or if we were to experience delays in collecting payments from Bank of America,” the S-1 said.
The security firm says that its Counter Threat Platform aggregates as many as 160 billion events from its clients around the word each day, which the company analyzes to discover malicious activity and deliver appropriate mitigations.
According the filing, subscription revenue was $207.2 million in fiscal 2015, up from $170.2 million in fiscal 2014. For the first nine months of fiscal 2016, subscription revenue totaled $195.6 million.
Dell acquired SecureWorks in 2011 for $612 million.
The company will trade on the Nasdaq stock market under ticker symbol “SCWX”.