Atlassian eyes $5bn valuation after US listing

Local tech darling Atlassian will aim for a valuation of about $US3.6 billion ($5bn) when it lists on the Nasdaq

Mike Cannon Brookes stands to become a billionaire from the Atlassian float. Picture: Britta Campion

FLOATS: Local tech darling Atlassian will aim for a valuation of about $US3.6 billion ($5bn) when it lists on the Nasdaq, in what would be the largest IPO by an Australian technology company.

The Sydney-based software tools maker plans to raise $US350 million by offering 20 million shares at a price range of $US16.50 to $US18.50 each, in numbers revealed in an updated preliminary prospectus it filed with the Securities & Exchange Commission over the weekend.

At the middle of that scale, Atlassian would command a market valuation of $US3.6bn.

This will make co-founders Mike Cannon-Brookes and Scott Farquhar instant billionaires, based on their 37 per cent holdings in the company. Each will be worth $US1.33bn on paper.

The company was last valued in April 2014 at $US3.3bn, when shares were sold to private investors.

Timing for the listing hasn’t been disclosed but sources say a roadshow is expected to begin on Monday, with Atlassian expected to begin trading the following week under its Nasdaq ticker symbol TEAM.

Atlassian reported nearly $US7m of net income on $US319.5m in revenue for the year ending June 30, 2015.

A year earlier it drew $US19m of net income on $US177m in revenue.

Shareholders include venture capital firm Accel, T. Rowe Price and Dragoneer Investment Group. If successful, Atlassian’s US listing would be more than double that of other local software firm MYOB’s float earlier this year.

MYOB raised $833.1m at $3.65 per share.

Atlassian is also looking to expand its real estate footprint in Australia, with global head of real estate & experience Brent Harman telling The Australian “we are actively looking at several options”.

“In addition to satisfying Atlassian’s space needs, we see this as an opportunity to start working towards our long-term goal of creating a world-class technology ecosystem in Sydney,” he said.

The company recently lost a bid to become the anchor tenant of Sydney’s Australian Technology Park to the Commonwealth Bank, which will move 10,000 employees there.

Mr Cannon-Brookes recently defended his decision to list the company in the US rather than Australia, which was criticised by some as being a blow to the local tech sector.

“We are passionate and dedicated to improving the Australian industry. It’s a huge priority for us as a company and we have to do that,” he said in an interview. “We spend a huge amount of time on that and it’s an essential part of our company.”

The company was founded in 2002 and now has 1395 employees across 12 cities.