The developer of military technologies Fire Point received an offer from a well-known investment bank to conduct a private subscription for 10% of the shares with a valuation of the company at $5.8 billion. This was stated by the co-owner and chief designer of the startup, Denis Shtilerman.
The developer of military technologies Fire Point received an offer from a well-known investment bank to conduct a private subscription for 10% of the shares with a valuation of the company at $5.8 billion. This was stated by the co-owner and chief designer of the startup, Denis Shtilerman.
The entrepreneur shared details of financial development and plans to attract international partners in an interview with the YouTube channel PRESSING.
According to Shtilerman, the previous agreement with the United Arab Emirates has already lost its relevance, since the current capitalization of the Ukrainian developer is much higher. At the same time, the company does not plan to go for a classic IPO due to the risk of a significant slowdown in the pace of development of military solutions. Currently, only a point sale of a minority stake is being considered to confirm the market valuation and attract significant investors.
«We don’t want to go for a classic IPO — it will really slow down our development speed. You will waste a lot of time filling out some forms that have nothing to do with the speed of your progress. Therefore, we are now considering selling a share of the company just to confirm capitalization and so that some very reputable investors come here and show a certain level of trust in us,» the co-owner of Fire Point noted.
According to him, an important step to strengthen the company’s international reputation was the involvement of former US Secretary of State and former CIA Director Mike Pompeo in the advisory board. It is reported that the American politician spent more than nine months on detailed compliance of the company before agreeing to become its advisor and associate his name with the Ukrainian startup.
As for the current value of the company, Denis Shtilerman estimates it at over $5 billion. He believes that this figure is confirmed by an offer from a well-known investment bank, which is ready to conduct a closed subscription for 10% of Fire Point shares at an estimate of $5.8 billion. The bankers' fixed remuneration for this service should be a $2 million fee, as well as an additional 50% of the amount, which will potentially exceed the initial estimate of $5.8 billion.
Recall that in March, the Antimonopoly Committee of Ukraine returned the application of the Arab defense holding EDGE Group to purchase 30% of the Ukrainian manufacturer of long-range drones and missiles Fire Point. The deal could value the company at $2.5 billion.
