Private in public

26 Aug 2020 By Robert Cyran Follow @rob_cyran

CEO Alex Karp says the U.S. analytics firm has done that, only working for friendly powers. After 17 years Palantir has a history of losses and just 125 customers. And it wants to perpetuate its founders’ control. The firm looks to have sided with them over incoming investors.

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Palantir Technologies’ regulatory filing for its upcoming direct listing was published on Aug. 25. It did not specify how many shares are expected to be sold by holders or indicate an expected price.

The data analytics firm, which does commercial and classified work for governments, said revenue for the first six months of the year was $481 million, an increase of 49% from the same period last year. Palantir’s operating loss was $169 million, compared to $285 million in the first six months of 2019. The company, founded in 2003, said it has never made a profit.

Palantir will have 497 million Class A shares, 1.1 billion Class B shares and 1 million Class F shares outstanding. Class A shares hold one vote, Class B have 10, and Class F have variable voting rights. All F shares will be held by a voting trust established by the founders, and as long as they are party to an agreement and collectively hold a minimum number of shares they will have 49.999999% of total votes.

In a letter included in the draft prospectus, Palantir Chief Executive Alexander Karp said the firm’s software is used to “target terrorists and to keep soldiers safe.” He also said: “We have chosen sides, and we know that our partners value our commitment. We stand by them when it is convenient, and when it is not."

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