Morning Report: Okta’s IPO Puts More Points On The Board For Enterprise Startups

Morning Report: Despite raising its price, Okta’s first day as a public company is going very well.

Shares of Okta, an enterprise identity management company, are up around 36 percent during their first day’s trading as of the time of writing.

Okta, which raised its IPO price range from $13 to $15 per share to $15 to $17 per share before settling on $17, opened at $23.56, up 39 percent. The company has since given modest ground. Recent IPOs Snap and Mulesoft also priced at $17 per share, opening up 41.2 percent and 43 percent respectively.

The company’s aggregate returns from the IPO are strong; a raised price range expands the amount of money that the debuting firm raises in their offering. Here’s TechCrunch from yesterday on Okta’s final dollar result:

Okta is […] looking to raise as much as $187 million in the hopes that it can capitalize on the newly open IPO window. […]

Okta will be offering 11 million shares, though there is also an option for underwriters to purchase an additional 1.65 million shares. In total, Okta could raise as much as $215 million. Previously, Okta looked to price its shares as high as $15 per share.

The Okta result isn’t a surprise. The company’s revenue growth greatly outstripped the pace by which its losses expanded. Improving margins can paint a path to profits, something that investors are in favor of.

Following the disappointing Elevate Credit IPO—down 3.99 percent today, to boot—the Okta offering should restore some market confidence. Okta sets the stage for Yext: a company with slower growth that could test investor appetite.

From the Crunchbase Daily

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