Observe construction technology Software company Procore goes public today after prices are above its bandwidth and the IPO slowdown looks like a delay it wasn’t.
Investors are quick to offer the company’s value in trading, giving Procore a higher than expected valuation and increasing confidence in the IPO market in general.
Construction technology may not be as glamorous as aerospace, but it’s a huge industry that is fraught with inefficiencies.
Procore initially set an IPO range of $ 60 to $ 65 per share before setting a price of $ 67 per share last night. The debut had gross proceeds of more than $ 600 million and a fully diluted valuation of $ 9.6 billion. Shares were trading at a solid $ 85.25 this early afternoon.
Given Procore’s debut, TechCrunch quickly digs into the company’s new valuation and the resulting revenue multipliers.
We then have notes from a chat with CEO Tooey Courtemanche about his company’s debut, what it wants to do with its new capital, and how it expects its partner platform to evolve and mature.
First the numbers.
The new price from Procore
Starting with Procore’s $ 9.6 billion fully diluted valuation set in its IPO pricing, the company is richly valued. The company had revenue of $ 113.9 million in the first quarter of 2021, which translates into a run rate of $ 455.8 million. As you can calculate, this has rated the company at 20 times its execution rate. more precisely at 21.2x.
However, if we modestly extrapolate the company’s current value given the appreciation of the trade, Procore is now worth roughly $ 12.3 billion at full dilution. This results in a run rate multiple of around 27x.