Tenable Prices IPO, Raises $250 Million

Tenable Holdings today announced the initial public offering (IPO) terms for Tenable Network Security, which has raised about $250 million and is pricing 10.9 million shares at $23 per share.

The company jumped 40% in its first day on the market, with shares opening at $33 and boosting Tenable's market value past $3 billion. The stock price was $31.29 per share at the time of publishing.

Tenable, based in Columbia, Md., was founded in 2002 to help companies detect security threats. Since building vulnerability assessment tool Nessus 10 years ago, the company has built and released Tenable.io, a "Cyber Exposure" platform designed to give security teams visibility into activity across their attack surface of endpoints, cloud, and IoT devices. The company is led by chairman and CEO Amit Yoran, former president of RSA and founding director of US-CERT.

In the 16 years since its founding, Tenable has grown to amass more than 24,000 customers in 160 countries. Clients include 53% of the Fortune 500 and 29% of the Global 2000, in addition to nine of the 10 largest US financial institutions, the company reports.

The past year marked a significant year of growth for Tenable, which ended 2017 with record billings exceeding $250 million, marking over 45% growth for the fiscal year. This also signified the seventh consecutive quarter of more than 40% year-over-year billings growth for the firm.

Toward the end of last year, the security firm teamed with Siemens on managed security services for critical infrastructure networks. The ICS/SCADA vendor announced plans to incorporate Tenable's vulnerability detection and management system into a new managed security service for critical infrastructure providers.

Hints of an IPO first appeared late last month, when Tenable filed a registration statement on Form S-1 with the US Securities and Exchange Commission. At the time, it announced shares would be traded under the NASDAQ symbol TENB, the symbol it continues to use today.

Tenable is one of several cybersecurity firms that have announced, or are rumored to announce, IPOs this year. Endpoint security company Carbon Black went public in early April, with plans to raise $100 million. Cloud security software provider Zscaler, the first major tech IPO of 2018, priced its stock in March at $16 per share.

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