HashiCorp plans to go public between Thanksgiving and Christmas, with its maiden IPO price interval expected to give it one of the highest values of any technology firm with a significant open source component to its primary business. The infrastructure management business stated in a recent S-1/A filing that it aims to sell shares in its initial public offering at a price range of $68 to $72 per share; Of course, the interval might change before the firm prices. This week, Nubank, for example, lowered its IPO price range ahead of its expected launch.
Using a fully diluted share count, at the top end of HashiCorp’s price range, the former startup will rank among the world’s most valuable tech corporations that rely on open source technology. When the corporation does trade, it will place points on the board for more than just. (For additional information about the company’s finances, see here.) Let us look at HashiCorp’s IPO price range and how it compares to other public tech businesses with high revenue multiples.
At its current price range, HashiCorp’s IPO valuation may estimate in one of two ways. The first uses a basic share count, or the number of shares that currently expected to be outstanding after the company’s first public offering. The second is a fully diluted share count, which includes shares obtained through options that have not yet converted from pledges to shares.
Following the IPO, the business plans to have 178,895,570 shares of Class A and B stock in circulation. If we consider shares reserved for HashiCorp’s underwriting firms, the basic IPO share count jumps to 181,190,570. Using the latter calculation, HashiCorp would be worth between $12.3 billion and $13.0 billion at an IPO price range of $68 to $72 per share.
The company’s valuation, however, is significantly higher when completely diluted. According to Renaissance Capital, HashiCorp’s IPO, if at $70 a share and included a wider share count, would be worth $14.2 billion. The corporation may be worth as much as $14.6 billion if converted to $72 per share. The unicorn’s final valuation was about $5 billion in March 2020, indicating that its IPO pricing will be a success.