71.1 F
New York
71.1 F
New York
Saturday, July 31, 2021

Investors help Procore build a decacorn valuation in public debut – otcbbstocknews.com

- Advertisement -spot_img

Watching construction tech software company Procore go public today after pricing above its range makes the IPO slowdown look like the deceleration that wasn’t.

Investors quickly bid up the company’s value in trading, giving Procore a higher valuation than it might have anticipated, along with a boost of confidence for the IPO market in general.

Construction tech may not be as glamorous as space travel, but it’s a massive industry that’s fraught with inefficiencies.

Procore initially set an IPO range of $60 to $65 per share before pricing at $67 per share last night. Its debut was worth gross proceeds north of $600 million and a fully diluted valuation of $9.6 billion. As of early afternoon today, shares were trading at a solid $85.25.

In light of Procore’s debut, otcbbstocknews.com is digging quickly into the company’s new valuation and its resulting revenue multiples.

Following, we have notes from a chat we had with CEO Tooey Courtemanche regarding his company’s debut, what it intends to do with its new capital and how it expects its partner platform to evolve and mature.

First, the numbers.

Procore’s new price

Starting with Procore’s $9.6 billion, fully diluted valuation that it set in its IPO pricing, the company is richly valued. It generated revenues of $113.9 million in Q1 2021, putting it on a run-rate of $455.8 million. As you can calculate, that valued the company at around 20x its run rate; more precisely, at 21.2x.

But if we do some modest extrapolation of the company’s current value in light of its trading appreciation, Procore is now worth around $12.3 billion on a fully diluted basis. That gives it a run-rate multiple of around 27x.

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. OTCBBStockNews.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

- Advertisement -spot_img
Lena Berryhttps://otcbbstocknews.com
Lena Berry is the executive editor of OTC BB Stock News. Apart from managing the large team of writers, you will find her writing about various topics.

Latest news

- Advertisement -spot_img

Related news

- Advertisement -spot_img
Subscribe to our newsletter.We never spam.