MongoDB, a US-based database software producer backed by several corporate investors, will raise $192m when it floats on the Nasdaq Global Market later today.
The company priced 8 million shares at $24.00 each yesterday, well above the $18 to $20 range it set earlier this month. The share pricing values the company at $1.17bn.
The IPO’s underwriters have a 30-day option to buy a further 1.2 million shares, which would push the size of the offering up to $228m.
MongoDB has created a database software platform that has been downloaded more than 30 million times. It generates revenue through subscriptions and has built up a network of more than 4,300 customers, but made a $45.8m net loss in the first half of 2017, from $68m in revenue.
Although enterprise software providers Salesforce and Red Hat, chipmaker Intel and computing equipment producer Dell are all investors in MongoDB, which had raised $311m in funding since being founded in 2007, all hold stakes of less than 5% in the company.
Venture capital firm Sequoia Capital is MongoDB’s largest shareholder, with a 16.9% stake pre-IPO. Other notable investors are Flybridge Capital (11.6%), Union Square Ventures (9.7%), New Enterprise Associates (7.2%), Future Fund (6.2%) and MongoDB co-founders Dwight Merriman (7.8%) and Eliot Horowitz (5.8%).
Intel, Red Hat and In-Q-Tel, the US intelligence community’s VC arm, provided $50m for the company, then known as 10gen, in 2012, after it had previously raised funding from backers including New Enterprise Associates (NEA), Sequoia, Flybridge and Union Square Ventures.
The first two joined Salesforce, data storage technology producer EMC (now part of Dell), Altimeter Capital and funds and accounts advised by T. Rowe Price Associates for MongoDB’s $150m series E round the following year.
Goldman Sachs came on board for an $80m series F round in 2015 that included Altimeter Capital, NEA, Sequoia Capital and funds managed by T. Rowe Price.
Morgan Stanley, Goldman Sachs, Barclays Capital and Allen & Company are the joint bookrunners for the IPO, while Stifel, Nicolaus & Company, Canaccord Genuity and JMP Securities are co-managers.