The HashiCorp IPO intends to shoot the narrows between Thanksgiving and Christmas, with its first IPO pricing interval set to give it among the richest valuations of any technology company with a strong open source component to its core business.
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In a recent S-1/A filing, the cloud infra management company indicated that it expects to sell shares in its public offering at a range of $68 to $72 apiece. That interval could move, of course, before the company prices. Nubank, for example, reduced its IPO price range this week ahead of its anticipated debut.
At the upper end of HashiCorp’s price range, using a fully diluted share count, the former startup will land among the most richly valued tech companies in the world that sport a reliance on open source code. The company’s debut, then, will put points on the board for more than just itself when it does trade. (For more on the company’s economics, head here.)
Let’s talk about HashiCorp’s IPO valuation range, as well as how it stacks up to other public tech companies with robust revenue multiples.
What’s HashiCorp worth?
HashiCorp’s IPO valuation at its current range can be calculated in one of two ways. The first employs a simple share count, or the number of shares that are currently anticipated to be outstanding after its debut. The second is a fully diluted share count, which includes shares that have been earned through options but not yet turned from pledges into shares.
The company expects to have 178,895,570 shares of Class A and B stock in circulation after its IPO. HashiCorp’s simple IPO share count rises to 181,190,570 if we count shares reserved for its underwriting entities.
Using the latter figure, at a $68 to $72 per-share IPO price interval, HashiCorp would be worth between $12.3 billion and $13.0 billion.
However, on a fully diluted basis, the company’s value is much higher. Per Renaissance Capital, at $70 per share, HashiCorp’s IPO, inclusive of a broader share count, would value it at $14.2 billion. Converting that to $72 per share, the company could be worth as much as $14.6 billion.
The unicorn was last valued at around $5 billion in March 2020, meaning its IPO pricing looks set to be a win.