NAVAN, formerly known as TripActions, is taking big steps toward an IPO (initial public offering). The corporate travel management company recently declared and filed amended documents with the U.S. Securities and Exchange Commission (SEC). This action, occurring in the middle of a federal government shutdown, has perplexed the financial industry. Even with the current tough climate, Navan is looking positively ahead to what it feels will be a successful introduction to the public market.
The company will sell 30 million shares in its offering. At the same time, company insiders are planning to sell an additional 7 million shares. Navan’s most recent amended S-1 provides an expected pricing range of $24 to $26 a share. If the company goes public at the high end, it will be worth more than $960 million. Upon this success, the company would be valued at just under $6.45 billion.
Navan’s recent filings reflect its adherence to new SEC regulations that allow companies to submit updated information and receive automatic approval within 20 days without undergoing staff scrutiny. This new, streamlined process allows innovative companies like Navan to enter the public markets in a timelier manner. Navan is naturally happy to ride the wave of its own impressive growth curve.
The company announced a new rolling 12-month revenue of $613 million, a huge 32% year-over-year growth rate. It had the dubious honor of posting one of the largest losses of all time at $188 million. These numbers are indicative of the opportunity and struggles that Navan faces as it forges its path in the world of corporate travel.
Once the SEC approves the filings, Navan can start its roadshow, raising investor interest and securing commitments. This important stage will allow the company to prove out the business model that they have built. It will signal its growth potential to future shareholders, further entrenching its dominant market position.
