Pinterest’s initial public offering has generated $2 million in legal fees for the three firms guiding the deal—New York-based white-shoe law firm Cleary Gottlieb Steen & Hamilton; underwriter counsel Skadden, Arps, Slate, Meagher & Flom; and Delaware midsize firm Potter Anderson & Corroon.
The social media company, whose stock is expected to begin trading next week, disclosed the legal fees and expenses in an updated prospectus filed with the U.S. Securities and Exchange Commission Monday.
In the filing, Pinterest revealed that it plans to sell 75 million shares for between $15 and $17 in its upcoming offering, which at the midpoint of the price range would raise roughly $1.2 billion, according to The Wall Street Journal. That puts the company’s valuation at between $10 billion and $11.3 billion, valuing it below the $12 billion at which the online image-search company sourced its last fundraising in 2017.
Pinterest, which launched in 2010, has said in its filings that it reaches more than 250 million monthly active users, also referred to as “Pinners.” The company is expected to start trading next week on the New York Stock Exchange under the symbol “PINS.”
The Cleary corporate team working on the dual-class structure for Pinterest are partners Ethan Klingsberg, Jeffrey Karpf and Pamela Marcogliese, according to the social media network’s filing.
In a statement issued March 22, Cleary said it has worked on dual- and multi-class share structures for company clients, including serving as lead counsel to the shareholders of Levi Strauss & Co.’s IPO. That company adopted a dual-class capital structure to help the Haas family—descendants of founder Levi Strauss—retain control of decision making for the company.
The Skadden team, which is advising the underwriters in the IPO, is led by longtime corporate partner Gregg Noel and associates Allison Hunter, Alice Thai and Brittany Wightman, the firm said.
Potter Anderson acted as the special Delaware counsel for Pinterest for the S-1 filing, as the company is incorporated in Delaware.
According to a statement released by Potter Anderson Monday, Delaware matters related to the social media network’s public debut are being handled by corporate partners Michael Tumas and Roxanne Houtman and senior associate Dave DiDonato. Tumas previously chaired the firm’s executive committee before passing on the role to Kathleen Furey McDonough in 2017.
Potter Anderson also noted in its statement that its attorneys are experienced in advising clients on dual- and multi-class structures, and worked on similar deals for companies such as Alphabet, Snap Inc., Liberty Media Corp. and Qurate Retail Group.
Pinterest is among a host of large tech IPOs anticipated this year, including ride-hailing company Lyft’s offering last month. Like many other startups planning IPOs, Pinterest reported a net loss last year. But its loss was $63 million in 2018, which was less than half its prior-year deficit of $130 million, according to SEC filings.
The company reported $756 million in 2018 revenue in its IPO prospectus, showing revenue growth of 60 percent year over year.