when-is-telos-ipo-date-1605811104313.jpg
Source: istock, Telos

Should You Buy the Telos Stock IPO?

By

Updated

On Thursday, Nov. 19, Telos Corporation revealed the terms for its IPO. The company plans to raise $254.5 million in the offering. The stock is set to debut on Nov. 19 on the Nasdaq under the ticker symbol “TLS.” How can investors buy into the Telos stock IPO?

Article continues below advertisement

Telos is a security software company based in Virginia. On Nov. 19, Telos said that it's offering about 15 million shares priced at $17 per share. Earlier, the company planned to offer about 12.35 million shares in the price range of $16 – $18 per share.

telos-cybersecurity-1605810925570.jpg
Source: Telos Facebook
Article continues below advertisement

What is Telos?

Telos Corporation is an IT and cybersecurity company located in Ashburn, Va. It was founded in 1969 by John B. Wood. Mainly, the company serves government and enterprise clients. Telos has received several contracts from the U.S. Department of Defense.

When is the Telos IPO?

On Nov. 19, Telos stock was listed on the Nasdaq under the ticker symbol “TLS.” The IPO will likely close on Nov. 23. Telos plans to raise $254.5 million and offer about 15 million shares in the IPO priced at $17 per share. Previously, the company aimed to raise $210 million and offer 12.35 million shares at a midpoint price of $17 per share. Telos will likely be valued at $1.02 billion with 59.84 million outstanding shares after the IPO.

Article continues below advertisement

B. Riley Securities, BMO Capital Markets, Northland Capital Markets, Wedbush Securities, Needham & Company, Colliers Securities, D.A. Davidson & Co., and MKM Partners are the listed underwriter on the deal.

When Is Telos IPO Date
Source: Unsplash
Article continues below advertisement

What is the Telos IPO stock price?

Telos had priced its IPO at $17 per share. The stock started trading on Nov. 19 on the Nasdaq at the opening price of $21.90. As of 12:41 p.m. ET, Telos stock was trading at $19.95 — up 17 percent from the IPO price.

Should you buy Telos stock IPO?

Long-term investors should consider buying Telos stock since the company operates in a growth industry and the IPO is reasonably priced. The company’s net revenue rose 30.3 percent in the first six months of 2020 to $87.6 million. Telos reported a net loss of $2 million in the first six months of 2020 compared to a net loss of $5.2 million in the same period last year. 

Article continues below advertisement

The global market for cybersecurity products and services, valued at $157 billion in 2019, is set to reach $305 billion in value by 2027, according to a 2020 research report by Grand View Research.

How to buy the Telos IPO

To buy Telos stock when it lands on the Nasdaq, investors can open a stock trading account with online brokers like TD Ameritrade, E-Trade, Charles Schwab, Robinhood, SoFi Invest, and Vanguard.

Advertisement

More From Market Realist