Yext has priced its IPO at $11 per share, above its expected $8 to $10 range. The New York-based enterprise tech startup, which begins trading Thursday on the NYSE under the symbol YEXT, stands to raise $115.5 million in the offering. The terms give the company an initial market cap of roughly $940 million and a fully diluted market value of over $1.3 billion.
Founded in 2006, Yext provides a platform designed to help businesses manage their digital presence in online maps and directories. The company had raised roughly $116 million in equity funding from investors including Sutter Hill Ventures (23.6% pre-IPO stake), IVP (15.9%) and Insight Venture Partners (10.3%). Its most recent equity funding was a $50 million round in 2014 at a $525 million valuation.
With Yext’s announcement, all five of the year’s biggest VC-backed IPOs in the US have priced at the top or above its expected range (a sign of strong initial demand for the stock):
- Snap: $17, above range, +44% first day
- MuleSoft: $17, above range, +46% first day
- Okta: $17, top of upwardly revised range, +38% first day
- Alteryx: $14, top of range, +11% first day
- Yext: $11, above range
Good news for Cloudera in the buildup to its IPO?
Founded in 2006, Yext joins a short list of New York companies that have gone public over the last few years. The Empire State is home to its fair share of startups, but just 19 VC-backed companies headquartered in New York have completed IPOs since the beginning of 2012, per PitchBook data. That list includes online marketplace Etsy (NASDAQ: ETSY) and online lender OnDeck (NYSE: ONDK)—both of which had disappointing public offerings and have since performed poorly on the stock market.
Article by Dana Olsen, Joshua Mayers – PitchBook