Coupa Software More Than Doubles in IPO

By Chris Lange Updated Jan 13, 2:43AM EST · Published Oct 6, 11:10AM EDT

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Coupa Software More Than Doubles in IPO — © Thinkstock

Coupa Software Inc. (NASDAQ: COUP) entered the market drastically higher than what anyone really expected. The company priced its 7.4 million shares at $18 per share, at the high end of its expected pricing range of $16 to $18 per share. However, the company actually entered practically double this price. At the $18 price level, the entire offering was valued up to $153.18 million, also with consideration to its 1.11 million share overallotment option.

The underwriters for the offering are Morgan Stanley, JPMorgan, Barclays, RBC Capital, JMP Securities and Raymond James.

This is the leading provider of a unified, cloud-based spend management platform that connects more than 460 organizations with more than 2 million suppliers globally. Its platform provides greater visibility into and control over how companies spend money.

Using this platform, businesses are able to achieve real, measurable value and savings that drive their profitability. From Coupa’s inception, its customers have used its platform to bring more than $250 billion of cumulative spend under management, which the company estimates has resulted in more than $8 billion of customer savings to date, based on applying certain savings rates derived from industry benchmarks.

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The cloud-based platform has been designed for the modern global workforce that is mobile and expects real-time results, flexibility and agility from software solutions.

In the filing, the company described its finances as follows:

For our fiscal years ended January 31, 2015 and 2016, our revenues were $50.8 million and $83.7 million and our net losses were $27.3 million and $46.2 million, respectively. For the six months ended July 31, 2015 and 2016, our revenues were $34.5 million and $60.3 million and our net losses were $25.1 million and $24.3 million, respectively.

Coupa intends to use the net proceeds from this offering for working capital and other general corporate purposes, which it currently expects will include continued investment in developing technology to support growth, increased investment in sales team and marketing activities, as well as overall growth in international operations. However, the company does not currently have specific planned uses for the proceeds.

Shares of Coupa were last seen trading at $40.70, with a range of $5.64 to $41.17 on the day thus far. Over 6 million shares have moved on the day as of 11 a.m. Eastern.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.