Palantir is gearing up for its public debut on the NYSE tomorrow morning (after 17 years), and now we're getting some data on how the company's shares are valued by investors.
The NYSE announced that the company, trading under the ticker PLTR, will have a reference price of $ 7.25 per share. Palantir aims for direct listing, so a reference price is only a guide from the market for investors and does not represent an actual trading price.
According to Palantir's filing with the SEC this afternoon, the company has 1.16 billion Class A shares, 484 million Class B shares and 1 million Class F shares on its cap table outstanding today, or approximately 1.64 billion total. Only Class A Shares are traded and Class B and F Shares can be converted into Class A Shares on a one-to-one basis. On a fully diluted basis, which, according to Palantir, represents a total of 2.2 billion shares according to the latest S-1 filing, the company is valued at $ 16 billion. The difference between these two total numbers is due to outstanding stock performance grants, warrants and other financial instruments.
The company will start trading tomorrow morning and since it is aiming for a direct listing it will not raise any primary capital as part of its debut.
We looked at Palantir's share price over time based on internal trades, which rose from around $ 5 per share in early January 2019 to $ 9.17 per share earlier this month as the company prepared its prospectus for its IPO. A reference price of $ 7.25 is below recent trades and also below a price of $ 10 reported by Palantir bankers in the Wall Street Journal last week.
Of course, a point of reference, much like an IPO price, is a largely made up number, and the real value of that stock will come from the market tomorrow as traders buy stocks from insiders.
In its afternoon filing today, Palantir announced that around 475 million shares will be available for trading while the rest of the company's shares are blocked. Palantir pioneered direct listing with lockup. Hence, we will also see how this configuration affects the share price in the coming months as more shares enter the market.