Tech unicorn MuleSoft (MULE) priced its initial public offering late Thursday at $17 a share, $1 above its upwardly revised price range of $14-$16. That gives MuleSoft an initial valuation of $2.9 billion.
The San Francisco-based developer of application programming interfaces offered 13 million shares and raised $221 million, which investors hope will add much-needed excitement to an IPO market that has been historically weak since the second half of 2015. MuleSoft is scheduled to begin trading Friday morning on the NYSE under the ticker MULE.
The hope has been that the recent IPO of Snapchat operator Snap (SNAP) will lead to a burst of IPO activity. The IPO slowdown has occurred despite U.S. stock markets at or near all-time highs.
Snap priced at an above-range 17 on March 1 and jumped 44% on its first day of trading. The stock hit a record high of 29.44 the following day, before reversing sharply amid a series of sell ratings. Snap fell 4.2% to 19.89 on the stock market today, hitting a fresh post-IPO low.
In addition to MuleSoft, oilfield services provider ProPetro (PUMP) also priced its IPO late Thursday. It sold an upsized 25 million shares at $14 a pop, raising $350 million. ProPetro planned to offer 20 million shares at a price range of $16-$19, which would have raised $350 million at the midpoint.
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Both will follow the successful IPO of outdoor apparel maker Canada Goose (GOOS), which popped 26% on its trading debut Thursday. Canada Goose closed near the lows of the day after trading as high as 18.40.
IBD’S TAKE: The biggest stock market winners typically make their major price moves within a few months or years of their initial public offering. So it pays to identify and track companies that are getting ready to go or have recently gone public. Learn more at IBD’s IPO page. IBD also focuses on the best-performing IPOs of the past three years in its IPO Leaders column.
MuleSoft says its mission “is to help organizations change and innovate faster by making it easy to connect the world’s applications, data, and devices,” according to MuleSoft’s IPO prospectus. It does this through the development of application programming interfaces, or APIs. MuleSoft estimates its current market opportunity to be $29 billion.
For 2016, MuleSoft reported revenue of $187.7 million, an increase of 70% from 2015. It reported a net loss of $49.6 million vs. a loss of $64 million the prior year.