UK cyber-firm Darktrace says IPO set for early May

LONDON (Reuters) - British cyber-security firm Darktrace said on Monday its planned $4 billion premium listing on the London Stock Exchange would take place in early May.

Darktrace, backed by tech entrepreneur Mike Lynch, aims to raise new funds to accelerate product development and strengthen its balance sheet. The technology company, founded in 2013 in the university city of Cambridge, uses AI to understand IT networks and detect attacks by identifying unusual behaviour.

"The final offer price in respect of the offer will be determined following a book-building process, with admission currently expected to occur in early May 2021," the company said in a statement on Monday.

There also is also expected to be a secondary sell-down of existing ordinary shares by certain existing shareholders, it said.

Darktrace said it was targeting a free float of at least 20% of its issued share capital and expects that it would be eligible for inclusion in the FTSE UK indices.

A source familiar with the transaction told Reuters earlierthis year the company would target a 3 billion pound ($4.1billion) valuation.

(Reporting by Huw Jones; Editing by Rachel Armstrong)