AAA MongoDB modifies IPO terms

MongoDB modifies IPO terms

MongoDB, the US-based database software producer backed by corporates Salesforce, Intel, Dell and Red Hat, set the terms on Friday for an initial public offering that could raise up to $160m.

The company plans to issue 8 million shares on the Nasdaq Global Market priced between $18.00 and $20.00. It publicly filed for the offering late last month.

Founded in 2007, MongoDB has built an open-source distributed database platform that stores data in the cloud, and which features tools such as indexing, ad hoc queries and real-time data aggregation. It offers the software to enterprises through a subscription model.

The offering will follow $311m of funding, $50m of which came in a 2012 round that included semiconductor producer Intel, data storage provider Red Hat and In-Q-Tel, the venture capital vehicle for the US intelligence community.

MongoDB added $150m in a 2013 series E round backed by Intel, Red Hat, enterprise software supplier Salesforce, data storage technology producer EMC, Altimeter Capital, New Enterprise Associates (NEA), Sequoia Capital and funds and accounts advised by T. Rowe Price.

Goldman Sachs joined the latter four for MongoDB’s $80m series F round in early 2015, and the company’s earlier investors include Flybridge Capital Partners and Union Square Ventures. EMC’s stake is now held by Dell Technologies Capital, which absorbed EMC’s VC portfolio after it was acquired by Dell in 2016.

None of the corporates number among MongoDB’s main shareholders, which are Sequoia Capital (16.9%), Flybridge Capital (11.6%), Union Square Ventures (9.7%), NEA (7.2%), Future Fund (6.2%) and company co-founders Dwight Merriman (7.8%) and Eliot Horowitz (5.8%).

Underwriters Morgan Stanley, Goldman Sachs, Barclays Capital, Allen & Company, Stifel Nicolaus, Canaccord Genuity and JMP Securities will have the option to buy another 1.2 million shares post-IPO, which could potentially increase the size of the offering to $184m.

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