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Procore awaits IPO

By   /   Monday, May 17th, 2021  /   Comments Off on Procore awaits IPO

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Editor’s note: This article was updated May 19 to reflect the fact that Procore did not begin trading that day.

The Carpinteria-based software company Procore Technologies expects to raise around $615 million in an IPO scheduled for no later than May 21.

The Procore IPO is on the New York Stock Exchange’s calendar for the week of May 17-21. It was on the calendar for a May 19 IPO, but shares had not begun trading when the Business Times went to press on that day.

Procore, which provides cloud software to the construction industry, will trade under the ticker symbol “PCOR.” It is not the biggest IPO of the week — the oat milk company Oatly expects to raise $1.4 billion or more — but it is the biggest from a company based in the tri-county region in recent history.

Procore’s IPO is years in the making; the company filed its first registration statement with the U.S. Securities and Exchange Commission in 2019, but its plans for an IPO in 2020 were derailed by the COVID-19 pandemic and the accompanying market slowdown.

Procore expects to price its shares in the $60-$65 range, according to an amended prospectus it filed May 10 with the SEC. The company plans to register up to 10.41 million shares of stock, with 9.47 million sold to the general public and the rest reserved for the underwriters of the deal, including Goldman Sachs and J.P. Morgan Securities.

After the IPO, Procore will have around 128.1 million outstanding shares, meaning about 7.4% of its shares will be offered to the public. 

If the company debuts at its highest estimated price point of $65, the IPO would raise $676.7 million in capital for Procore and its selling shareholders, and the company would have a market capitalization of about $8.3 billion.

That market cap would make the company the fifth-largest publicly traded firm in the tri-county region, based on market capitalizations as of May 18.

Amgen, the Thousand Oaks-based biotechnology giant, is by far the largest company in the region by market cap, at $142.5 billion. It is followed by The Trade Desk at $24.1 billion, Teledyne Technologies at $18.7 billion and Deckers Brands at $9.1 billion. AppFolio is currently fifth, with a market cap of $4.4 billion.

Procore founder and CEO Craig “Tooey” Courtemanche’s shares could be worth more than $400 million after the IPO. He owns about 5.9% of the company, according to SEC filings, and will own about 5.4% after the IPO.

Procore’s biggest investor is the venture capital firm Iconiq Strategic Partners, which owns 36.6% of the company after the IPO, a share that will be worth around $3 billion. Another firm, Bessemer Venture Partners, will own 13% after the IPO.

Procore raised $150 million in a private funding round in July 2020, after the company scrapped its plans for an IPO in 2020. That funding round was reported to value the company at around $5 billion.

In the first quarter of 2021, Procore’s revenue grew 23% compared to the same quarter a year ago, from $92 million to $114 million.

More importantly, the company mitigated its net losses, with a net loss of $14 million in the first quarter of 2021, compared to $19 million in the first quarter of 2020.

Procore employs more than 1,800 people globally, about half of them on the Central Coast. It had $400 million in revenue in 2020, according to its latest SEC filing, and more than 1.6 million users of its products. Its revenue grew by 38% between 2019 and 2020, and by 55% the previous year. 

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