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Software Firm Procore Targets $616 Million for IPO Raise

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From Bloomberg:

Procore Technologies Inc., a cloud-based construction software company, is seeking to raise as much as $616 million in an initial public offering.

Procore, which is restarting its IPO plans after they were delayed by the coronavirus pandemic, said in a filing Monday that it plans to sell 9.47 million shares for $60 to $65 each.

At the top of that range, the company would have a market value of $8.3 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission. Diluted to include employee stock options and restricted stock units, that value increases to at least $9.4 billion.

Procore, based in Carpinteria, California, first filed in early 2020 to go public but postponed the transaction during the coronavirus pandemic. After the delay, it raised more than $150 million in a funding round from investors including Dan Sundheim’s D1 Capital Partners at a $5 billion valuation, Bloomberg News reported.

The company continued to attract new users during the pandemic, growing its customer base by 19% in 2020. With more than 40% of construction firms reporting higher costs and slower project completion due to labor shortages, the digitization of the industry has accelerated during the past year, the company said.

For the first quarter, Procore had a net loss of $14 million on revenue of $114 million, compared with a $19 million loss on revenue of $92 million for the same period a year ago, according to its filings.

Procore’s top backers are Iconiq Strategic Partners, which will own almost 37% of the shares after the IPO, and Bessemer Venture Partners, which will have a 13% stake. Tiger Global Management is also an investor.

The offering is being led by Goldman Sachs Group Inc., JPMorgan Chase & Co., Barclays Plc and Jefferies Financial Group Inc.e. Procore plans to list on the New York Stock Exchange under the symbol PCOR.