May 20, 2021
(Bloomberg) — Procore Technologies Inc., a cloud-based construction software company, priced its shares in an initial public offering above a marketed range to raise $634.5 million.
The company sold 9.47 million shares for $67 each, according to a press release Thursday. It had marketed the shares for $60 to $65, an exchange filing showed.
Procore has a market value in the listing of more than $8.5 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission. Diluted to include employee stock options and restricted stock units, that value increases to at least $9.6 billion.
The listing is Procore’s second run at going public. Based in Carpinteria, California, it first filed in early 2020 for an IPO but postponed the transaction during the coronavirus pandemic. After the delay, it raised more than $150 million in a funding round from investors including Dan Sundheim’s D1 Capital Partners at a $5 billion valuation, Bloomberg News reported.
The company continued to attract new users during the pandemic, growing its customer base by 19% in 2020. With more than 40% of construction firms reporting higher costs and slower project completion due to labor shortages, the digitization of the industry has accelerated during the past year, the company said.
For the first quarter, Procore had a net loss of $14 million on revenue of $114 million, compared with a $19 million loss on revenue of $92 million for the same period a year ago, according to its filings.
Procore’s top backers are Iconiq Strategic Partners, which will own almost 37% of the shares after the IPO, and Bessemer Venture Partners, which will have a 13% stake. Tiger Global Management is also an investor.
The offering is being led by Goldman Sachs Group Inc., JPMorgan Chase & Co., Barclays Plc and Jefferies Financial Group Inc. Procore‘s shares are expected to begin trading Thursday on the New York Stock Exchange under the symbol PCOR.