(Reuters) -Construction software firm Procore Technologies Inc was valued at nearly $11 billion in its market debut on Thursday, after its shares opened 25% above their initial public offering price.
Shares of the company, which debuted on the New York Stock Exchange nearly a year after it had first filed to go public, opened at $84 each, compared with its IPO price of $67 each.
The Santa Barbara, California-based company delayed its listing plans last year due to choppy market conditions brought on by the pandemic.
Procore’s strong debut comes in the backdrop of more recent market struggles, this time due to inflation concerns and cryptocurrency price plunges.
Those worries had prompted mortgage insurer Enact Holdings and hearing-aid services company Hear.com to postpone their IPOs last week. Website-hosting service Squarespace, which went ahead with listing plans and debuted on Wednesday, saw its valuation slump by a third of what it was in March.
Procore priced about 9.5 million shares at $67 each, for a raise of nearly $634.5 million. The price was above the upper end of an earlier announced range between $60 and $65 each.
The nearly two-decade old company offers real-time access to project information, simplifying complex workflows, at a time when construction firms have been saddled with higher costs and slower completion rates due to the COVID-19 pandemic.
Procore, whose cloud-based construction management software is used by over 1.6 million users in over 125 countries, is backed by D1 Capital Partners and Tiger Global, among others.
Goldman Sachs, J.P. Morgan, Barclays and Jefferies are the lead underwriters on the offering.
(Reporting by Niket Nishant in Bengaluru; Editing by Ramakrishnan M.)
