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Highlights
- HashiCorp has raised US$1.2 billion in its IPO on Wednesday.
- HashiCorp announced the pricing of its proposed offering.
- The software firm is offering 15.3 shares of its Class A common stock in the IPO.
HashiCorp Inc. is all set to debut in the NASDAQ Global Select Market on Thursday, a day after its initial public offering (IPO), in which the software company raised US$1.2 billion.
According to people familiar with the IPO, the proceeds exceeded the expectations. The company sold 15.3 million shares of its Class A common stock for US$80 per share.
At this opening price, HashiCorp is valued at US$14 billion. Its fully diluted market value will be US$16 billion if the employee stock options and restricted shares are considered.
HashiCorp’s initial offering price was in the range of US$68 to US$72, its filings with the market regulator, the Securities and Exchange Commission (SEC), showed.
The San Francisco-based firm offers open-source tools and commercial products that allow developers, operators, and other professionals to run a secure cloud computing infrastructure. The company was co-founded by Mitchell Hashimoto and Armon Dadgar in 2012.
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HashiCorp will trade in Nasdaq
HashiCorp shares are expected to start trading on the Nasdaq Global Select Market on December 9 under the ticker symbol HCP. The offering is expected to close on December 13, subject to the satisfaction of customary closing conditions.
The company is providing a 30-day option for the underwriters to purchase an additional 2.295 million shares at the offering price, excluding discounts and commissions.
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Last year, the company raised US$175 million in a Series E funding round that brought its valuation to US$5.1 billion. HashiCorp has partnerships with cloud service providers like Amazon AWS and Alphabet's Google.
For the six months ended on July 31, 2021, the company's revenue was US$142.02 million compared to US$94.79 million in the same period a year ago. In the same period, it reported a net loss of US$40.42 million against a loss of US$67.32 million a year ago.
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Bottomline
Software companies have raised more than US$37 billion in 80 IPOs so far this year. The tech companies were the most sought-after IPOs. Investors, however, should evaluate the stocks carefully before investing in stocks.
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Rupam Roy - Analyst923 PostsAfter completing his graduation in English literature, Rupam briefly worked in content management and digital marketing. At Kalkine, he writes on the US markets. His hobbies include composing songs and music....
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Sanjeeb Baruah - Financial Journalist368 PostsSanjeeb is a senior journalist who has been in the media for nearly two decades. He wrote on various topics, from politics, international relations, business to wildlife. At Kalkine, he writes on stock markets, companies, equities, and IPOs, etc....
