Israeli co Kaltura sets terms for IPO at $2b valuation

Israeli video cloud management company Kaltura has filed a revised prospectus with the US Securities and Exchange Commission (SEC), setting the terms for its Initial Public Offering (IPO) on Nasdaq at a valuation of $2 billion. The company, which develops and markets video management systems for businesses and media organizations plans to issue shares at $14-$16 per share.

Kaltura plans to raise $244-278 million with the underwriters having an option to buy shares worth $49-56 million. At the same time, the company’s existing shareholders will sell shares worth $85-98 million. In the prospectus, Kaltura says that it will use some of the capital raised for acquisitions of companies or technologies as well as general business purposes such as working capital, R&D expenses, and marketing and sales activities.

Founded in 2006, Kaltura has raised $156 million, according to IVC. All the company’s major shareholders will be selling shares in the IPO including Kaltura’s founders chairman and CEO Ron Yekutiel, president Dr. Michal Tsur, Dr. Shay David, and Eran Etam. If the shares are sold at the mid-range of $15 million, Yekutiel will sell shares for $16.3 million and be left with a 5% stake worth $97.2 million.