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Via Nasdaq

Silicon Valley cybersecurity company ForeScout last night raised $116 million in its IPO, pricing 5.3 million shares at $22 each. By most measures it was a roaring success, given that the company had only planned to offer 4.8 million shares at between $20 and $22. Initial market cap of $806 million, and a fully-diluted market value of $1.23 billion.

But there is a bit of a catch, related to the fine print on its company's final round of venture funding, a $79 million Series G infusion led by Wellington Management in early 2016.

Please explain: The Series G stock was sold at $23.73 (split-adjusted), an included a quasi-ratchet provision whereby Forescout must issue Wellington additional common stock if the IPO priced below $29.66 per share (which, of course, it did). Earlier investor Aspect Ventures gets a bit of make-up too, but all the other pre-IPO shareholders get diluted a bit (as noticed by the folks at EquityZen).

Lesson learned: That Series G round gave Forescout a post-money valuation of $1 billion, which enabled it to get extra headlines. But the structure piper must eventually be paid and, for Forescout, the bill came due today.

Go deeper

Dion Rabouin, author of Markets
28 mins ago - Economy & Business

First glimpse of the Biden market

Photo: Jonathan Ernst-Pool/Getty Images

Investors made clear what companies they think will be winners and which will be losers in President Joe Biden's economy on Wednesday, selling out of gun makers, pot purveyors, private prison operators and payday lenders, and buying up gambling, gaming, beer stocks and Big Tech.

What happened: Private prison operator CoreCivic and private prison REIT Geo fell by 7.8% and 4.1%, respectively, while marijuana ETF MJ dropped 2% and payday lenders World Acceptance and EZCorp each fell by more than 1%.

Mike Allen, author of AM
1 hour ago - Politics & Policy

Biden-Harris, Day 1: What mattered most

President Joe Biden and first lady Dr. Jill Biden arrive at the North Portico of the White House. Photo: Alex Brandon-Pool/Getty Images

The Axios experts help you sort significance from symbolism. Here are the six Day 1 actions by President Biden that matter most.

Driving the news: Today, on his first full day, Biden translates his promise of a stronger federal response to the pandemic into action — starting with 10 executive orders and other directives, Caitlin Owens writes.

2 hours ago - Politics & Policy

Read: Pete Buttigieg's opening statement ahead of confirmation hearing

Pete Buttigieg, President Biden's nominee to be secretary of transportation, in December. Photo: Kevin Lamarque/AFP via Getty Images

Pete Buttigieg, President Biden's nominee to lead the Transportation Department, will tell senators he plans to prioritize the health and safety of public transportation systems during the pandemic — and look to infrastructure projects to rebuild the economy — according to a copy of his prepared remarks obtained by Axios.

Driving the news: Buttigieg will testify at 10 a.m. ET before the Senate Committee on Commerce, Science and Transportation. He is expected to face a relatively smooth confirmation process, though GOP lawmakers may press him on "green" elements of Biden's transportation proposals.