Telos Corp., provider of IT services to federal government agencies, military, intelligence, and large commercial organizations, today made its debut in the public market with an initial public offering of 14.97 million shares priced at $17 a share of its common stock.
The Ashburn, Va.-based company, established in 1969, will use the proceeds from the IPO for general corporate purposes, to retire debt, and to repurchase a noncontrolling interest in its Telos identity management unit, among other things.
With 2019 revenues of around $160 million, Telos is among a handful of security vendors that have gone public this year. The others include McAfee, which in October raised $740 million in what was actually its second IPO; Palantir, which went public in September with a valuation of around $22 billion; and Sumo Logic, which in September raised some $325 million via an IPO that valued the company at more than $2.15 billion.
In a conversation with Dark Reading Thursday, Telos CEO John Wood described the initial investor response to the IPO as overwhelmingly positive.
"The investment marketplace really, really like our story," Wood says. "We are hugely oversubscribed, and the quality of the investors that came in blew me away."
Wood believes much of the positive sentiment is tied to the fact that 85% of Telos' revenue is recurring and that nearly 100% of its customers are referenceable and repeat buyers.
Wood is bullish about the outlook for several of the company's core technologies. One of them is Telos Ghost, a new capability the company a ..
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