British cyber-security firm Darktrace is looking for a valuation of between 1.6 billion and 1.9 billion pounds ($2.22-$2.6 billion) in its London stock exchange listing, a source familiar with the transaction told Reuters.
That is well below the $4 billion said by sources previously to be the company's original valuation target.
Darktrace, which has the backing of tech entrepreneur Mike Lynch and counts Rolls Royce and Colca-Cola as its customers, wants to raise $200 million from the listing, with a so-called greenshoe extension option potentially taking the overall money raised to $230 million, the source said.
The source added that Darktrace plans to sell between 51.1 million and 65.1 million new shares.
On Sunday, Sky News reported Darktrace would be cutting its valuation to 2.4-2.7 billion pounds to avoid repeating the much anticipated but ultimately disappointing public debut of food delivery firm Deliveroo at the end of March.
A spokeswoman for Darktrace declined to comment.
The source said management and employees are offering up to $45 million in the Initial Public Offering with convertible loan note holders offering up to $75 million.
Darktrace, which is set to debut on the London Stock Exchange in early May, is raising new funds to accelerate product development and strengthen its balance sheet.
($1 = 0.7201 pounds)
(Reporting by Arno Schuetze and Aniruddha Ghosh; Editing by Kirsten Donovan) ((Aniruddha.Ghosh@thomsonreuters.com; 91 83 83 81 2416;))
