Next-generation eCommerce risk management platform Riskified has filed an initial public offering (IPO) targeting a valuation in excess of $3 billion on the New York Stock Exchange under the ticker symbol RSKD, according to a Security & Exchange Commission (SEC) filing on Monday (July 19).
The float consists of 17.3 million Class A ordinary shares offered by Riskified and 200,000 that will be sold by one of the company’s existing shareholders at an anticipated price of between $18 and $20 per share. In addition, underwriters have the option of purchasing an additional 2.63 million shares from the company at the IPO price.
Backed by General Atlantic and Fidelity Management & Research, Riskified could raise as much as $350 million at the top of the range. The cybersecurity management firm won’t realize any proceeds from the sale of the shares from the existing shareholder.
Headquartered in New York and co-founded by Eido Gal and Assaf Feldman in 2013, the company developed a machine learning platform to combat issues related to digital payment risk. The filing showed that revenue in 2020 increased 30 percent from 2019 to $169.7 million.
Riskified works with big brands including Trip.com, Wish, Prada, Ticketmaster and Air Europa, according to its website. The company originally started as a fraud solution to help merchants approve orders that might ordinarily have been declined. The platform helps retailers stop abuse before it happens, and also works to offer customers protection from malicious account takeover attacks.
Goldman Sachs, J.P. Morgan Securities and Credit Suisse Securities are acting as lead book-running managers. Barclays Capital, KeyBanc Capital Markets, Piper Sandler, Truist Securities and William Blair & Company are joint book-running managers. Loop Capital Markets, Samuel A. Ramirez & Company, Siebert Williams Shank & Co. and Stern Brothers & Co. are acting as co-managers.
Fraud has been a consistent and growing problem by banks, FinTechs, digital retailers, cloud companies and government agencies around the world. A PYMNTS report found that it costs U.S. merchants $2.94 for every $1 of fraud.