Sequoia-backed software startup Unity seeks to raise $1.05 billion in IPO

(Reuters) - Unity Software Inc will look to raise up to $1.05 billion in its initial public offering, it said on Wednesday, giving the Silicon Valley-based software startup a valuation of about $11.06 billion.

The company intends to sell 25 million shares, at a price range between $34 and $42 per share.

Unity’s IPO marks yet another major tech listing, as companies look to ride the resurgence in U.S. capital markets after the COVID-19 crisis forced several firms to postpone their plans to go public earlier this year.

Several other public debuts of high-profile, venture-backed tech startups such as Airbnb, Palantir Technologies, Asana and DoorDash are lined up before the end of 2020.

Unity’s software platform is widely used by game developers, artists, architects, filmmakers and others to create, run and monetize interactive 3D content.

As of June 30, the firm - which develops software that is used to design video games - had about 1.5 million monthly active creators in more than 190 countries and territories worldwide, according to a regulatory filing here.

The company reported a net loss of $163.2 million for 2019, compared with a net loss of $131.6 million a year earlier. Revenue jumped about 42% to $541.8 million during the same period.

Venture capital firm Sequoia Capital is Unity’s largest shareholder with a 24.1% stake, while private equity firm Silver Lake holds an 18.2% stake, according to the filing.

Goldman Sachs & Co and Credit Suisse are the lead underwriters of the IPO.

Reporting by C Nivedita in Bengaluru; Editing by Aditya Soni