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Coupa Software to Debut on Nasdaq Today, To Raise $133.2M
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San Mateo, CA-based Coupa Software Inc is set to start trading on Oct 6, 2016 at the Nasdaq stock exchange under the symbol “COUP”. The cloud-based software platform recently fixed its price for Initial Public Offering (IPO) at $18 per share, which was the high end of its previously given range of $16--$18 a share.
At the current price, Coupa Software is expected to raise almost $133.2 million by selling 7.4 million shares. Earlier, the company had anticipated to sell 6.7 million shares at the price range of $14--$16.
Coupa Software provides a unified, cloud-based spend management platform that connects more than 460 organizations with above 2 million suppliers globally. Per S1 filing the platform “unites the three core aspects of spend management — procurement, invoicing and expense management — and has the ability to manage both direct and indirect spend”.
Battery Ventures and EL Dorado Ventures with 16.2% and 13.9% ownerships are the major venture capitalists. In the last round of funding (G series) Coupa Software raised $165 million from the venture capitalists.
Spend Management: A Fast Growing Market
Coupa Software’s platform helps enterprises keep a tab on daily expenditures. Per Techcrunch, the company claims to have saved their customers- which include the likes of Molina Healthcare and Staples – almost $8 billion.
Coupa Software is well positioned to benefit from the strong growth prospect of the spend management software market, which is estimated to be worth $16 billion in 2016. Per IDC the global market for procurement and invoicing applications will reach $4.3 billion in 2016 and will grow to $5.3 billion by 2019.
However, the market is dominated by more established players like Oracle (ORCL - Free Report) and SAP AG (SAP - Free Report) , which is a significant headwind for Coupa Software. We note that the company is yet to report profits, although revenues surged 64.6% to $83.7 million in fiscal 2016.
Coupa to Gain from a Rebounding IPO Market
After a weak first half of 2016, the technology IPO market has rebounded strongly over the last couple of months. The recovery was primarily led by the likes of Acacia Communications and Twilio (TWLO - Free Report) .
Radio-frequency identification tag provider Impinj and Big Data software developer Talend were some other successful names. Last week, hyperconverged integrated systems (HCIS) provider Nutanix soared 133% on its debut.
We expect Coupa Software’s IPO to benefit from the recovering technology market.
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Coupa Software to Debut on Nasdaq Today, To Raise $133.2M
San Mateo, CA-based Coupa Software Inc is set to start trading on Oct 6, 2016 at the Nasdaq stock exchange under the symbol “COUP”. The cloud-based software platform recently fixed its price for Initial Public Offering (IPO) at $18 per share, which was the high end of its previously given range of $16--$18 a share.
At the current price, Coupa Software is expected to raise almost $133.2 million by selling 7.4 million shares. Earlier, the company had anticipated to sell 6.7 million shares at the price range of $14--$16.
Coupa Software provides a unified, cloud-based spend management platform that connects more than 460 organizations with above 2 million suppliers globally. Per S1 filing the platform “unites the three core aspects of spend management — procurement, invoicing and expense management — and has the ability to manage both direct and indirect spend”.
Battery Ventures and EL Dorado Ventures with 16.2% and 13.9% ownerships are the major venture capitalists. In the last round of funding (G series) Coupa Software raised $165 million from the venture capitalists.
Spend Management: A Fast Growing Market
Coupa Software’s platform helps enterprises keep a tab on daily expenditures. Per Techcrunch, the company claims to have saved their customers- which include the likes of Molina Healthcare and Staples – almost $8 billion.
Coupa Software is well positioned to benefit from the strong growth prospect of the spend management software market, which is estimated to be worth $16 billion in 2016. Per IDC the global market for procurement and invoicing applications will reach $4.3 billion in 2016 and will grow to $5.3 billion by 2019.
However, the market is dominated by more established players like Oracle (ORCL - Free Report) and SAP AG (SAP - Free Report) , which is a significant headwind for Coupa Software. We note that the company is yet to report profits, although revenues surged 64.6% to $83.7 million in fiscal 2016.
Coupa to Gain from a Rebounding IPO Market
After a weak first half of 2016, the technology IPO market has rebounded strongly over the last couple of months. The recovery was primarily led by the likes of Acacia Communications and Twilio (TWLO - Free Report) .
Per data available from Renaissance Capital, Acacia, which has a Zacks Rank #2 (Buy), is the most successful IPO in terms of returns (almost 393.7%) over the last 12 months. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Radio-frequency identification tag provider Impinj and Big Data software developer Talend were some other successful names. Last week, hyperconverged integrated systems (HCIS) provider Nutanix soared 133% on its debut.
We expect Coupa Software’s IPO to benefit from the recovering technology market.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>