September 23, 2019 / 7:12 AM / 2 months ago

German software firm TeamViewer expected to price in upper half of range -bookrunner

FRANKFURT, Sept 23 (Reuters) - German software company TeamViewer is expected to price its initial public offering in the upper half of the range, one of the bookrunners said on Monday, indicating that one of Europe’s largest IPOs of the year remains on track.

The deal values the company at up to 5.3 billion euros ($5.84 billion) and is Germany's only sizeable 2019 listing besides VW truck unit Traton.

“Books are multiple times oversubscribed throughout this range and above”, the bookrunner said in a note to investors ahead of Tuesday’s close of the books, adding that pricing guidance was 25.50–26.50 euros per share.

TeamViewer sells software for online meetings and remote desktop access, with more than 20 million support sessions taking place each day on its platform. Unlike many other tech companies going public, TeamViewer is already profitable.

The private-equity backed firm had offered its shares at between 23.50 and 27.50 euros apiece with the free float ranging from 30% to 42% of the firm’s shares depending on the total offer size. The first day of trading is planned for Sept. 25.

Permira bought TeamViewer for 870 million euros in 2014 and Permira’s Germany head Joerg Rockenhaeuser said that the investor wanted to remain a major shareholder after the IPO.

TeamViewer says that its addressable market, currently worth 10 billion euros, will grow to 30 billion in 2023, as companies invest in digitally controlling their production machines and the trend of employees working from home intensifies.

Listed peers include Zoom Video Communications Inc, Okta Inc and Slack Technologies Inc, which listed on the New York Stock Exchange in June at a blockbuster valuation of more than 50 times its revenues. ($1 = 0.9080 euros) (Reporting by Arno Schuetze, editing by Thomas Escritt)

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