CS Disco Is Going Public—Here's What to Know About the IPO
Legal software company CS Disco is taking the route public. The company just set the terms for its IPO. What can investors expect?
Jul. 13 2021, Published 3:08 p.m. ET
An Austin-based company is taking the path to go public one step at a time. CS Disco, which provides legal software solutions, has set the terms for its IPO.
When is the CS Disco IPO date? How much does the software-as-a-service company expect to earn in the process?
What is CS Disco?
CS Disco provides software called "DISCO" that enables legal companies to tackle their workflows.
Currently, CS DISCO software is in place at more than 900 law firms, with more than 170 of the Am Law 200 using the platform. Based in Austin, the company was first founded in Houston by founder Kiwi Camara in 2013. Camara's solutions "apply artificial intelligence and cloud computing to help lawyers and legal teams improve legal outcomes for their clients."
The company signed contracts for $74 million in sales for the year ending March 31.
CS Disco sets price range for its public offering
According to an updated registration statement with the SEC, CS Disco is looking at an IPO that could bring in $193 million. This is based on the mid-point price range for 7 million shares.
What to expect for the CS Disco share price
CS Disco plans to price the 7 million shares at $26–$29 each. If the $193 million IPO comes to fruition, the company would generate a fully diluted market value of $1.6 billion. That would put CS Disco at the high end of small-cap stocks, although it could compete in the mid-cap space with 25 percent growth.
Risk factors associated with a CS Disco IPO investment
Aside from the fact that all new stocks face volatility in the early days, CS Disco does have some risk factors that are unique to the company.
CS Disco has grown rapidly in the last few years and the company knows it. The pace of that growth might not remain consistent over the next few years, which could slow down the returns for early investors.
Look out for the CS Disco ticker after the IPO
CS Disco plans to go public on the NYSE under the ticker symbol "LAW." The stock will be available to retail investors shortly after the company goes public on the market debut day.
When is CS Disco going public?
With a price range in our laps, CS Disco is ready to take the next step toward its IPO. The company plans to provide firm pricing the week of July 19, with the debut to follow shortly after.
Should you take a chance on CS Disco stock when the IPO hits?
For a company on the smaller end of the publicly traded spectrum, CS Disco shows confidence in its financials. The loss from operations has been decreasing steadily over the last few years. While the cost of revenue is increasing, the gross profit is rising. Meanwhile, CS Disco is getting a hold on its net losses.
There are risks associated with investing in newly public small-cap companies. However, CS Disco has strong fundamentals. Anyone doing due diligence on upcoming LAW stock will want to keep CS DISCO in mind as they perform their research.
