Dell’s SecureWorks expects to raise up to $181.1m in its planned initial public offering.

The company plans to price nine million shares at between $15.50 and $17.50 each. It would give SecureWorks a market capitalisation of around $1.4bn without an overallotment option.

SecureWorks aims to use the net proceeds from the offering for working capital and other general corporate purposes, instead of transferring funds to Dell or its parent, Denali Holding.

The proceeds will be used to finance SecureWorks’ growth, develop new solutions and enhance the company’s solutions. This is in addition to plans to fund capital expenditures and make investments in, and acquisitions of, complementary businesses, services or technologies.

Denali is planning to own about 70 million shares of Class B stock, or nearly 86.1% of its shares outstanding and roughly 98.4% of the combined voting power of both classes of stock.

SecureWorks’ revenue was $339.5m in fiscal 2016, $262.1m in fiscal 2015 and $205.8m in fiscal 2014. Net losses, however, have risen from $44.5m in fiscal 2014 to $72.4m in fiscal 2016.

Dell acquired SecureWorks in 2011 for $612m. SecureWorks provides intelligence-driven information security solutions focused solely on protecting its clients from cyber attacks.

The company’s solutions allow organisations to fortify their cyber defenses to avoid security breaches, identify malicious activity in real time, prioritise and respond rapidly to security breaches.

The IPO market experienced its slowest growth on record in the first quarter of this year due to lack of public offers from technology companies. Nine firms have raised a total of just $1.2bn from IPOs in the March quarter.

Though SecureWorks was established during the previous boom in the technology sector and belongs to an established company, it is similar to other companies in terms of struggling to make profits. Its losses have been increasing despite a growth in revenue.