The cybersecurity company is set to confirm that it will seek a valuation of between £2.4bn and £2.7bn
Darktrace, the cybersecurity company, has lowered its valuation in the lead up to its debut on the London Stock Exchange as investors are looking to avoid a repeat of the Deliveroo debacle.
Initially, Darktrace was hoping to be valued at over £3.5bn ahead of its listing next month.
However, it is now being reported that its valuation will be somewhere between £2.4bn and £2.7bn.
Sources told Sky News that the finer details will be outlined in a statement to the London Stock Exchange that could happen any day now.
It has also been said that Darktrace is choosing to be more cautious in its approach because of the controversy surrounding its links to Mike Lynch, the company’s first investor.
Lynch is battling against being extradited to the US on multiple accounts of wire fraud regarding the sale of Hewlett Packard over ten years ago.
Lynch, along with his wife owns nearly 20% of Darktrace, is being sued for $5bn by Hewlett Packard, as the company is accusing him of committing accounting fraud.
Lynch denies any wrongdoing as a decision is expected in the next couple of months.
Darktrace is eager to avoid a repeat of Deliveroo’s disastrous market debut when it way overpriced its offering. Shares in the online food delivery company have plummeted by 40% since it lasted last month.
Darktrace helps companies to detect suspicious activity and was founded in 2013 with seed funding from Invoke Capital, Lynch’s venture capital fund.
