Construction tech company Procore began trading on Thursday, closing at $88, 31 percent above its IPO price.
Known for its construction management software platform, Carpinteria, California-based Procore raised nearly $635 million through its IPO, selling 9.47 million shares for $67 apiece. The company had set a price range of between $60 and $65 for its IPO, and its stock opened at $84 on Thursday.
Procore initially filed its S-1 with the Securities and Exchange Commission in February 2020, but put the plans on hold after the COVID-19 pandemic broke out. Instead, the company raised $150 million in funding in May 2020.
“We had been prepared to go, and then COVID came along and I think our first priority at that time was that our employees were safe. We found a way to lean in and help the industry first and foremost,” chief financial officer Paul Lyandres said in an interview with Crunchbase News.
Once its customers began to recover and some things started to go back to normal, the company picked up where it left off, he said. Procore, which was founded in 2003, is backed by investors including D1 Capital Partners, ICONIQ Capital and Tiger Global Management.
The company aims to digitize the construction industry through its cloud-based construction management platform. Its IPO comes, however, as the construction industry grapples with a lumber shortage in the United States.
“Lumber shortages, labor shortages, there’s certainly a lot of challenges and we lean in everywhere we can, particular on the labor front … but it’s a resilient industry and we will work through these challenges,” Lyandres said.
Procore’s IPO and first-day performance is a bright spot in an otherwise difficult week for the markets. Tech stocks in particular were hit hard as concerns of inflation triggered investors to sell, though they rebounded on Thursday.