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UPDATE 2-Construction software firm Procore seeks over $8 bln in revived IPO plan

05/10/2021 06:56
UPDATE 2-Construction software firm Procore seeks over $8 bln in revived IPO plan

Adds financials, background on previous IPO plans

- Procore Technologies said on Monday it was targeting a valuation of over $8 billion in its initial public offering in the United States, a year after the construction software startup delayed its listing plans due to pandemic-led choppy market conditions.

In its filing, the Santa Barbara, California-based company said it plans to sell about 9.5 million shares priced between $60 and $65 each and raise about $615 million.

The listing plans come as several technology startups, which have seen a boost in use and demand during the COVID-19 pandemic, have filed to go public. Tech-focused companies such as software storage startup VAST Data and cloud firm Redis Labs have also raised capital at attractive valuations in private funding rounds.

Procore, which submitted paperwork for its U.S. IPO last year, raised $150 million at a valuation of $5 billion, according to media reports in April last year.

Founded in 2002, Procore offers its cloud-based construction management software to more than 1.6 million users in over 125 countries. Its backers include D1 Capital Partners and Tiger Global, among others.

The company offers real-time access to project information, simplifying complex workflows, a service that has gained popularity during the pandemic, with over 40% of construction firms reporting higher costs and slower project completion due to labor shortages.

It reported a 23% jump in revenue to about $114 million for the first quarter this year, while net loss narrowed to nearly $14 million from $19 million a year earlier.

Procore will list its stock on the New York Stock Exchange under the symbol "PCOR".

Goldman Sachs, J.P. Morgan, Barclays and Jefferies are the lead underwriters on the offering.

(Reporting by Niket Nishant and Noor Zainab Hussain in Bengaluru; Editing by Shinjini Ganguli)

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