Enterprise software provider Salesforce and video conferencing platform developer Zoom are providing $150m for Israel-based work management software producer Monday.com alongside the latter’s $574m initial public offering.
The company is issuing 3.7 million shares on the Nasdaq Global Select Market today priced at $155 each, significantly above the IPO’s $125 to $140 initial price range.
Salesforce’s corporate venturing unit Salesforce Ventures, and Zoom are each buying $75m of Monday.com’s shares in a private placement taking place alongside the offering. They give the company a market capitalisation of approximately $6.92m.
Monday.com was spun off from web development software producer Wix in 2012 with $1.5m of funding from venture capital firm Genesis Partners. It operates an online platform that helps organisations build custom software and work management tools.
The company subsequently raised a total of about $193m from Genesis Partners, Sapphire Ventures, Hamilton Lane, HarbourVest Partners, ION Crossover Partners, Vintage Investment Partners, Stripes Insight Partners and Entrée Capital across rounds between 2016 and mid-2019.
Insight Partners has the largest shareholding in Monday.com, with a 37.9% stake diluted from 42.7%. An entity known as Sonnipe owns an 11% stake, Stripes has 7%, and Zoom and Salesforce Ventures’ investments give them stakes sized just below 2.2% each.
Goldman Sachs and JP Morgan are the lead underwriters for the offering while Allen & Company and Jefferies are joint joint book-running managers.
William Blair, Piper Sandler, Oppenheimer, Canaccord Genuity, Cowen, Needham & Company, Academy Securities, Loop Capital Markets, Ramirez & Co, Siebert Williams Shank and Tigress Financial Partners are co-managers for the IPO.
The offering includes a 30-day option for underwriters to purchase up to 370,000 more shares, potentially lifting its size to about $631m.