- In the private market, HashiCorp was last valued at around US$ 5.1 billion in 2020.
- HashiCorp’s stock price range is out, and it is aiming to get a valuation of US$ 13 billion through the IPO.
- The underwriting responsibility for HashiCorp IPO is on Goldman Sachs, JP Morgan, and Morgan Stanley.
The San Francisco-based cloud software provider HashiCorp, Inc. announced terms for the initial public offering (IPO) and aims to get a valuation of up to US$ 13 billion.
In the private market, HashiCorp was last valued at around US$ 5.1 billion in 2020, and it seems that the software company will capitalize on a booming IPO market in the United States.
Due to a continued IPO frenzy, there's a premium on software companies with high-growth potential, even if their fundamentals are not very strong.
All you need to know about HashiCorp
HashiCorp has kept the price range of the shares between US$ 68 to US$ 72 and it wants to offer 15.3 million shares through the IPO. According to the prospectus submitted with the US Securities and Exchange Commission, HashiCorp aims to go public on the Nasdaq Stock Market.
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HashiCorp is involved in selling software used for managing the cloud infrastructure across the big public clouds operated by Amazon, Microsoft, and Google. The company's innovative technology allows the users to manage their networking, applications, and security in centralized locations.
As of now, there's no announcement on how to get the pre-IPO stock of HashiCorp. If the company doesn't give an option of buying the shares before the IPO, then the potential investors will have to wait for the company to start trading in the stock market to buy the HCP stock.
HashiCorp has opted to go public as it wants to obtain additional capital. In addition, the cloud software provider wants to use the gross proceeds for corporate purposes.
For the year ended January 31, 2021, HashiCorp’s total revenue was US$ 211.9 million, representing a significant increase from US$ 121.3 million in 2020.
The gross profit was US$ 170.8 million in 2021 in comparison to US$ 97.3 million last year. Meanwhile, the net loss increased to 83.5 million for the period ended January 31 compared to US$ 52.8 million in 2020.