Unity Software is about to start publicly trading its shares with an IPO, but no terms have been defined.
Today Unity Software, the company behind one of the most-used 3D engines in gaming and entertainment, filed an Form S-1 with the Securities and Exchange Commission. Form S-1's are filed when any private company wants to start publicly trading its shares on an open exchange. The form reveals tons of info about Unity's business, including revenue losses, risk factors, and the sizable market that Unity currently occupies.
The filing doesn't outline how many shares will be delivered at what price, however. Those terms will be announced in a press release. We do know that Goldman Sachs and Credit Suisse are underwriting the IPO. The form indicates Unity will have a capitalization of $1.2 billion and 238,366,733 shares of common stock outstanding after the IPO.
The form also advises current investors that their common stock will be diluted 43% after the IPO is issued. Current share value is at $2.41 per common stock, and Unity expects this to drop at least to $1.37, however this isn't the set price for the IPO shares.
Unit says it current has an addressable market of $29 billion; $12 billion for gaming, and $17 billion for non-gaming markets.
The company also says it has significant risk factors, and has lost money "every period since inception". Unity has reported operating losses of $105 million in 2018, $94 million in 2019, and currently has a deficit of $569 million.
The IPO will exclude over 14 million shares:
- 6,217,478 shares of our common stock issuable upon the exercise of options to purchase shares of our common stock outstanding as of June 30, 2020, with a weighted-average exercise price of $7.23 per share;
- 6,885,356 shares of our common stock issuable upon the vesting of restricted stock units, or RSUs, outstanding as of June 30, 2020;
- 82,568 shares of our common stock issuable upon the vesting of RSUs to be granted to our non-employee directors immediately prior to the effectiveness of the registration statement of which this prospectus forms a part;
- our issuance of 72,479 shares of common stock in connection with an acquisition in July 2020;
- shares of our common stock reserved for future issuance under our 2020 Plan, including new shares plus the number of shares (not to exceed shares) (i) that remain available for grant of future awards under our 2019 Plan, which shares will be added to the shares reserved under the 2020 Plan and will cease to be available for issuance under the 2019 Plan at the time our 2020 Equity Incentive Plan becomes effective and (ii) underlying outstanding stock awards granted under our 2009 Plan or 2019 Plan that expire, or are forfeited, cancelled, withheld or reacquired;
- shares of our common stock reserved for future issuance under our 2020 ESPP, which will become effective in connection with this offering; and
- 750,000 shares of our common stock that we plan to donate to a charitable foundation after the completion of this offering.
- > NEXT STORY: Diablo's loot lottery RNG is like a slot machine, says David Brevik
- < PREVIOUS STORY: Fall Guys coming to China's $36 billion mobile games market