Morning Report: Despite raising its price, Okta’s first day as a public company is going very well.
Shares of Okta, an enterprise identity management company, are up around 36 percent during their first day’s trading as of the time of writing.
Okta, which raised its IPO price range from $13 to $15 per share to $15 to $17 per share before settling on $17, opened at $23.56, up 39 percent. The company has since given modest ground. Recent IPOs Snap and Mulesoft also priced at $17 per share, opening up 41.2 percent and 43 percent respectively.
The company’s aggregate returns from the IPO are strong; a raised price range expands the amount of money that the debuting firm raises in their offering. Here’s TechCrunch from yesterday on Okta’s final dollar result:
Okta is […] looking to raise as much as $187 million in the hopes that it can capitalize on the newly open IPO window. […]
Okta will be offering 11 million shares, though there is also an option for underwriters to purchase an additional 1.65 million shares. In total, Okta could raise as much as $215 million. Previously, Okta looked to price its shares as high as $15 per share.
The Okta result isn’t a surprise. The company’s revenue growth greatly outstripped the pace by which its losses expanded. Improving margins can paint a path to profits, something that investors are in favor of.
Following the disappointing Elevate Credit IPO—down 3.99 percent today, to boot—the Okta offering should restore some market confidence. Okta sets the stage for Yext: a company with slower growth that could test investor appetite.
From the Crunchbase Daily
Lyft said to raise over $500M
- Lyft has just raised a new funding round that brings in over $500 million, according to media reports. The new round reportedly sets the pre-money valuation for the ride-hailing company at $6.9 billion.
LaPlanche launches fintech startup Upgrade
- LendingClub founder Renaud LaPlanche has launched a new startup called Upgrade that combines marketplace lending with tools to understand and monitor credit. The San Francisco-based startup raised $60 million in equity and convertible debt from a large group of investors including Union Square Ventures, Ribbit Capital, Vy Capital and Silicon Valley Bank. The launch comes nearly a year after LaPlanche stepped down as LendingClub CEO following the company’s disclosure of a series of loan malpractices.
IPO market gains steam with Okta, Elevate Credit
- Investors continued to show an appetite for tech and financial services IPOs this week, as two venture-backed companies tapped public markets. Identity management software provider Okta priced shares for its initial stock offering Thursday at $17 each, the top of the projected range. The same day loan provider Elevate Credit made its market debut, with shares climbing about 20 percent in first-day trading after pricing below the expected range.
- Using reported data and projections from Crunchbase, this report from Crunchbase News takes the pulse of the global venture capital ecosystem. It focuses on the numbers behind investment and liquidity—of Money In versus Money Out.