Palantir Technologies Inc., a provider of data mining software with government ties, is said to be mulling an initial public offering that could value it at up to $41 billion.

The Wall Street Journal reported on the company’s IPO plans today, citing anonymous sources. The tipsters told the publication that Palantir has been discussing the potential stock market debut with Morgan Stanley and Credit Suisse Group AG.

Morgan Stanley’s involvement wouldn’t be surprising. The bank has a long-running relationship with Palantir: Bloomberg recently reported that it had earned $60 million over the years for helping the data mining provider secure private funding. The company has raised $2 billion from investors and was valued at $20 billion after its last financing round in 2015.

Founded in 2003, Palantir started out as a supplier of data analytics software to the U.S. intelligence community. The company’s customer base has over time grown to include many other government organizations, from Department of Health and Human Services to local law enforcement agencies, as well as a sizable lineup of private sector firms.

Large enterprises use Palantir’s products to process the often sensitive data generated as part of their business activities. Banks rely on the software to detect fraud and execute complex financial moves, while firms in other industries such as manufacturing use it to optimize operations.  

The data mining provider said in 2017 that it was expecting to become profitable this year. According to today’s Journal report, Morgan Stanley assessed some of Palantir’s finances and produced an estimate that showed a theoretical IPO in 2020 could happen at a valuation of $36 billion to $41 billion. The bank is said to believe that launching an initial public offering in 2019 may lead to a lower valuation.

The tipsters said that Palantir is nevertheless considering the move as early as the second half of next year. If so, the company’s IPO could be among the biggest of 2019, although it likely won’t take the top spot. Uber Technologies Inc. and smaller rival Lyft Inc. are  planning to go public next year as well, with word leaking yesterday that banks had given the former company IPO proposals valuing it at as much as $120 billion.

Photo: Palantir