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Newly public Clearwater company KnowBe4′s IPO pulls in $175 million

The cybersecurity training firm’s stock shares have stayed above the IPO price so far.
Left to right: KnowBe4 board member Jeremiah Daly, co-president and chief revenue officer Lars Letonoff and co-president and chief financial officer Krish Venkataraman ring the Nasdaq bell in New York to open trading on April 22. Clearwater's KnowBe4, a cybersecurity training company, launched its initial public offering at $Left to right: KnowBe4 board member Jeremia16 per share.
Left to right: KnowBe4 board member Jeremiah Daly, co-president and chief revenue officer Lars Letonoff and co-president and chief financial officer Krish Venkataraman ring the Nasdaq bell in New York to open trading on April 22. Clearwater's KnowBe4, a cybersecurity training company, launched its initial public offering at $Left to right: KnowBe4 board member Jeremia16 per share. [ Nasdaq ]
Published Apr. 26
Updated Apr. 26

Clearwater cybersecurity training firm KnowBe4 has closed the window on its initial public offering on the Nasdaq, with sales pulling in about $175 million.

The company made 9 million shares available at $16 per share in the offering, known as an IPO, which accounted for $144 million. Another 500,000 shares were sold by select stockholders, pulling in $8 million.

KnowBe4 also allowed underwriters to purchase 1.475 million shares at the IPO price, which resulted in another $22.8 million.

According to a prospectus filed with the U.S. Securities and Exchange Commission, selling all IPO shares at $16 per share would result in proceeds of about $156 million for KnowBe4, before expenses. That would eclipse its total expenses for 2020.

Related: Clearwater tech firm KnowBe4 launches IPO at $16 per share

The company, which employs 1,000 people — more than 800 at its headquarters in downtown Clearwater — has 37,000 clients around the world, who hire it to train employees to recognize and combat tech scams such as phishing. KnowBe4 has seen exponential growth in revenue over the past decade, though its net earnings have yet to follow suit. Last year, the company pulled in $174.9 million, but had a net loss of $2.4 million.

KnowBe4 stock shot up from $16 after its launch, trading for no less than $21 per share since early Thursday. Both Barron’s and Reuters called the stock’s early performance “strong.” Shares of KnowBe4 (KNBE) were trading for about $23 on Monday.