HashiCorp (HCP) stock soars after $80 IPO raises $1.22bn
21:29, 9 December 2021
HashiCorp stock traded up to 11.8% higher on the first trading day after blowing past the $68 to $72 per share IPO price guidance levels and coming in at $80 per share.
Opening the session at $81.16, HashiCorp stock jumped to a high of $89.50 before closing at $85.19, or 6.49% higher on the day. Roughly 12.7 million shares traded hands, according to data maintained by Nasdaq. HashiCorp trades on the Nasdaq exchange under the ticker HCP.
Overnight Wednesday, HashiCorp set a price for its IPO, selling 15.3 million shares at $80 per share, and raising $1.22bn (£0.92bn), the company said in a release. Based on the $80 per-share IPO price, HashiCorp is valued over $14bn.
Goldman Sachs, JPMorgan Securities and Morgan Stanley acted as joint-lead bookrunners, with BofA Securities and Citigroup as book-runners. Blaylock Van, Cowen, JMP Securities, KeyBank Nomura, Oppenheimer, Stiffel, R. Seelaus and William Blair acted as co-managers.
The underwriting group was granted the option to purchase an additional 2.29 million additional shares within 30 days, bringing the total proceeds to a potential $1.41bn. Settlement is scheduled for 13 December.
“Today’s IPO represents a huge milestone for the company. We are now over 1,650 employees, with nearly 2,400 customers,” HashiCorp co-founders Mitchell Hashimoto and Armon Dadgar said in a joint post on the company’s blog.
“What started as a few sketches on a notepad is now a portfolio of software that powers some of the most innovative and large-scale applications in the world. We are excited to celebrate the progress with our community, employees, customers, and partners but we are far from considering the mission complete.”
Founded in 2012, San Francisco, California-based HashiCorp offers open-source software products managed remotely over cloud-based applications. Its main commercial product offerings are Terraform, Vault, Consul and Nomad.
Losses but growing revenue
HashiCorp reports $83.5m in losses, or $1.32 per share, on $211.9m in revenue for its 2021 fiscal year compared to a $53.4m loss for the full-year 2020 on $121.3m in revenue, according to the amended S-1 shelf registration filed with the US Securities and Exchange Commission. For the nine months ending 31 October, HashiCorp reported a $62.4m loss, or $0.94 per share, on $224.2m in revenue.
HashiCorp has 595 customers as of 31 October with $100,000 annual recurring revenue, up from 451 in the year-over-year period.
VC equity holders
HashiCorp had been funded primarily by venture capital, having raised $349.2m over five funding rounds. HashiCorp most recently participated in a Series E funding round in March 2020 led by Franklin Templeton, raising $175m for a $5.10bn valuation.
The largest equity holders in HashiCorp are VC funds Mayfield, GGV Capital. Redpoint Omega, True Ventures and HashiCorp co-founder Mitchell Hashimoto, who owns 9.20% of the company’s equity.
Read more: HashiCorp (HCP) launches IPO at -