AI firm Fractal eyes $400-500 million IPO at $3-billion valuation
AI and analytics unicorn Fractal Analytics has hired Morgan Stanley, Kotak Mahindra Capital and Axis Capital as bankers for its initial public offering (IPO) that could be worth $400-500 million and value the firm at close to $3 billion, executives close to the development told ET.
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The draft red herring prospectus is expected to be submitted to markets regulator Sebi by late September, they said.
The offer will be a mix of primary and secondary share sale where some of the existing investors would partly sell their stake.
“Early stage investors such as Apax Partners and Khazanah Nasional Berhad (Government of Malaysia) who have been associated with Fractal for six-odd years may be looking at an exit while TPG, which is fairly new, would partly offload their stake,” said one of the executives cited above.
Moneycontrol was the first to report Fractal’s IPO plan.
“We have been transparent about Fractal’s intention to go public. We are actively monitoring market conditions and will certainly provide official updates on our IPO plans as the situation evolves,” the company said in response to ET’s emailed query.
Morgan Stanley, Kotak Securities and Axis Securities did not respond till press time.
“When Fractal raised its last round in 2023 led by TPG Capital, it was valued at $1.55 billion, and this was in fact before the company ventured into GenAI
