Cloudflare Has Raised its IPO’s Expected Pricing Range

Cloudflare, an American web infrastructure and website security company, has raised its IPO’s expected pricing range to up to $490 million now.

The company’s initial public offering has increased to $12 to $14 a share from a previous range of $10 to $12 a share.

Cloudflare is offering 35 million shares in the IPO, which now increases the raising by $70 million to up to $490 million.

The company additionally announced recently that it may have broken the law.

In an updated S-1 filing to go public, Cloudflare disclosed that it may have broken the law in ways including including selling its services to terrorists, to narcotics traffickers, and to governments being sanctioned by the US.

The filing also said the company may have violated laws governing exporting encryption technology.

Cloudflare stated, “We identified that our products were used by, or for the benefit of, certain individuals and entities included in OFAC’s Specially Designated Nationals and Blocked Persons List (the SDN List), including entities identified in OFAC’s counter-terrorism and counter-narcotics trafficking sanctions programs, or affiliated with governments currently subject to comprehensive U.S. sanctions. A small number of these parties made payments to us in connection with their use of our platform.”

The company also said, “In 2019, we learned that we may have failed to comply with certain U.S. export-related filing and reporting requirements and may have submitted incorrect information to the U.S. government in connection with certain hardware exports.”