Software firm TeamViewer expected to price in upper half of range: bookrunner

FILE PHOTO: The headquarters of the German company Team Viewer is seen in Goeppingen, Germany September 14, 2019. REUTERS/Michael Dalder

FRANKFURT (Reuters) - German software company TeamViewer 1UD.DE is expected to price its initial public offering in the upper half of the projected range, one of its bookrunners said on Monday, indicating that one of Europe's largest IPOs of the year remains on track.

The deal values the company at up to 5.3 billion euros ($5.84 billion) and is Germany's only sizeable 2019 listing besides VW truck unit Traton 8TRA.DE.

“Books are multiple times oversubscribed,” the bookrunner said in a note to investors ahead of Tuesday’s close of the books. “Orders limited below 26.25 euros per share risk missing the transaction,” it added.

Earlier it had given a pricing guidance of 25.50-26.50 euros per share.

TeamViewer sells software for online meetings and remote desktop access, with more than 20 million support sessions each day on its platform. Unlike many other tech companies going public, TeamViewer is already profitable.

The private-equity backed firm had offered its shares at between 23.50 and 27.50 euros apiece with the free float ranging from 30% to 42% of the firm’s shares, depending on the total offer size. The first day of trading is planned for Sept. 25.

Permira [PERM.UL] bought TeamViewer for 870 million euros in 2014 and Permira’s Germany head Joerg Rockenhaeuser said that the investor wanted to remain a major shareholder after the IPO.

TeamViewer says that its addressable market, currently worth 10 billion euros, will grow to 30 billion in 2023, as companies invest in digitally controlling their production machines and the trend of employees working from home intensifies.

Listed peers include Zoom Video Communications Inc ZM.O, Okta Inc OKTA.O and Slack Technologies Inc WORK.N, which listed on the New York Stock Exchange in June at a blockbuster valuation of more than 50 times its revenues.

Reporting by Arno Schuetze; additional reporting by Christoph Steitz; editing by Thomas Escritt and Dan Grebler