Cyber security firm Avast cuts IPO price guidance to 250-270p per share

LONDON, May 9 (Reuters) - Private equity (IOB: 0QLS.IL - news) -backed cyber security firm Avast reduced the expected price range for its landmark initial public offering to 250-270 pence a share on Wednesday, from an earlier range of 250-320 pence.

The company aims to sell around 25 percent of its stock and raise up to $200 million in proceeds in what is expected to be one of Britain's biggest ever technology IPOs.

Based on Wednesday's price guidance, Avast would achieve a market capitalisation of between 2.5 billion and 2.7 billion pounds ($3.38 billion and $3.65 billion) upon listing.

The market admission will take place on Thursday, one of the bookrunners said.

In 2017, Avast's adjusted revenue was $780 million and adjusted cash earnings before interest, tax, depreciation and amortisation (EBITDA) was $451 million.

With (Other OTC: WWTH - news) net debt of around $1.35 billion, the enterprise value of the company could be up to $5.9 billion after the offering.

Avast is 46 percent-owned by its founders, Czech entrepreneurs Pavel Baudis and Eduard Kucera. CVC Capital Partners (IOB: 0QOQ.IL - news) has a 29 percent stake, with Summit Partners holding 7 percent.

The security software services provider had already planned a U.S. IPO in 2012 before backtracking citing market conditions.

The listing is expected to be the biggest by market capitalisation in London since July when the floatation of Russian gold company Polyus gave it a 6.3 billion pound market value. ($1 = 0.7399 pounds) (Reporting by Clara Denina, editing by Sinead Cruise)