Software Firm HashiCorp Tops IPO Goal to Raise $1.2 Billion
(Bloomberg) -- HashiCorp Inc. raised $1.2 billion in an initial public offering, exceeding its goal for the share sale and adding to a record-setting year for software companies.
The San Francisco-based company sold 15.3 million shares Wednesday for $80 each after marketing them for $68 to $72, according to a statement confirming an earlier Bloomberg News report.
At the IPO price, HashiCorp has a market value of $14 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission. Accounting for employee stock options and restricted stock units, the company has a fully diluted value of $16 billion.
More than $37 billion has now been raised by 80 software companies on U.S. exchanges this year, according to data compiled by Bloomberg. Software listings have been one of 2021’s dominant categories, partly fueled by businesses accelerating plans to go digital in response to the coronavirus pandemic.
HashiCorp was founded in 2012 by Mitchell Hashimoto and Armon Dadgar, who met at the University of Washington in Seattle. HashiCorp raised $175 million in a series E financing round last year at a valuation of $5.1 billion, according to a statement.
The company’s software helps businesses run a mix of public and private cloud systems, as well as older applications. It has partnerships with cloud platforms including Amazon.com Inc.’s AWS and Alphabet Inc.’s Google Cloud, its website shows.
Hashimoto and Dadgar emphasize their commitment to their “open-source philosophy” in a letter to investors included in the company’s prospectus.
“The cloud market is already an enormous market that is upending every industry and reshaping the modern tech stack,” they said. “Yet, cloud adoption is still early, and most organizations are only beginning their digital transformation.”
HashiCorp posted a net loss of $62 million on revenue of $224 million for the nine months ended Oct. 31, its filings show. That compares with a net loss of $77 million on revenue of $150 million for the same period a year earlier.
Investors in HashiCorp include affiliates of Mayfield, GGV Capital, and Redpoint Omega, according to the filings.
The offering is being led by Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co.
HashiCorp earlier planned for its shares to trade on the New York Stock Exchange. It now expects its shares to begin trading Thursday on the Nasdaq Global Select Market under the symbol HCP.
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