Cloud software vendor HashiCorp raises $1.2 billion in U.S. IPO

Cloud software vendor HashiCorp on Wednesday sold shares in its initial public offering (IPO) above its target range to raise $1.2 billion, a person familiar with the matter said.

HashiCorp priced 15 million shares at $80 per share, the source said. It had planned to sell shares at $68 to $72 apiece.

The IPO values the company at $14 billion.

The source requested not to be identified ahead of an official announcement. HashiCorp did not immediately respond to a request for comment.

The software maker’s debut comes amid a flurry of major tech listings this year as a number of startups look to capitalize on sky-high investor demand for new, high-growth tech stocks.

HashiCorp began as an open-source project and provides cloud-based software to customers such as Dutch lender ABN AMRO and infrastructure management for Daimler-owned car marker Mercedes-Benz.

The company was co-founded in 2012 by Mitchell Hashimoto and Armon Dadgar, who met at the University of Washington in 2008. They had worked together on a research project to make cloud technologies, which were then being developed by Amazon.com Inc and Microsoft Corp, available to scientists.

Based in San Francisco, HashiCorp considers itself “remote-first,” with over 1,650 employees operating across the world.

HashiCorp, whose investors include Mayfield, Franklin Templeton and T Rowe Price, is the latest company trying to take advantage of strong investor demand for high-growth tech stocks.

Software development platform GitLab Inc was valued at nearly $15 billion in its Nasdaq debut last month, while restaurant software provider Toast Inc fetched a valuation of nearly $33 billion in September.

HashiCorp will list its shares on NASDAQ under the symbol “HCP”.

Morgan Stanley, Goldman Sachs & Co, J.P. Morgan, Bofa Securities and Citigroup are lead underwriters on the offering. Reuters