Apigee, the US-based operator of a app development platform backed by consultancy firm Accenture and IT technology provider Juniper Networks, priced an initial public offering yesterday that will raise approximately $87m.
The company will issue just over 5.1 million shares priced at $17.00 each, right in the middle of its $16-$18 range. The IPO will value Apigee, which will float on Nasdaq later today, at about $495m.
Founded in 2004, Apigee has created a platform that enables businesses to design, deploy and scale application programming interfaces for mobile apps and digital communication with customers, partners or employees.
The company had raised approximately $204m in venture funding, $60m of which came from an April 2014 round featuring Accenture and SAP Ventures, the venture capital firm backed by software producer SAP now known as Sapphire Ventures, as well as Pine River Capital Management, Wellington Management Company, Norwest Venture Partners, Bay Partners, Third Point, and funds managed by BlackRock and Focus Ventures.
Juniper Networks participated in a $16m series B round, raised by Apigee under its old name of Sonoa Systems, in 2006. Accenture came on board in Apigee’s $35m series F round in 2013.
Norwest Venture Partners, the VC firm funded by bank Wells Fargo, will remain Apigee’s largest shareholder, though its stake will be diluted from 26% to 21.5%. Apigee’s other notable shareholders post-IPO include Bay Partners (15.2%), Third Point (9.8%) and Wellington (6.4%).
Morgan Stanley, Morgan Securities and Credit Suisse Securities are serving as joint book-running managers for the IPO, while Pacific Crest Securities, a division of KeyBanc Capital Markets, JMP Securities and Nomura Securities are the co-managers.
The underwriters will have the 30-day option to acquire a further 770,000 shares, which would increase the size of the offering to $97m.