Procore raises $635M in long-awaited IPO
Construction tech firm shelved its first attempt at going public in 2020
Construction software company Procore raised $634.5 million in its long-awaited initial public offering, debuting on the New York Stock Exchange on Thursday.
The company initially marketed stock between $60 to $65 a share, Bloomberg News reported. According to the publication, it sold nearly 9.5 million shares at $67 apiece.
The proptech offers software that enables all parties on a construction project — contractors, owners and architects — to connect via the cloud. The company has over 10,000 customers, including big landlords such as Brookfield and Lennar, according to Barron’s.
Procore, which will trade under the ticker PCOR, is valued at over $8.5 billion, or $9.6 billion including employee stock options and restricted stock units.
Procore attempted to go public in early 2020, but put off filing when the pandemic hit. The gap year allowed the company to expand its customer base by 19% in 2020.
Higher material costs and labor shortages in the past year slowed project timelines, but accelerated the construction industry’s switch to tech.
Top backers include Iconiq Strategic Partners, which owns over one-third of shares, and Bessemer Venture Partners with a 13 percent stake, as well as Tiger Global Management.
Procore reported a $14 million net loss on $114 million in revenue in the first quarter, better than last year’s $19 million loss on $92 million in revenue during the same period.
[Bloomberg News] — Suzannah Cavanaugh