Okta, a company that provides identity management and single sign-on (SSO) software, today finished its first day of trading on the Nasdaq at $23.51 per share under the symbol OKTA. The company was left with a market cap of $2.14 billion.
Okta filed for its initial public offering (IPO) on March 14, initially looking to raise $100 million, according to its S-1 filing.
On March 27 the company said it was expecting to price its stock at $15 per share. Then, on April 5, the company upped that maximum price to $17 per share. And yesterday, the company went ahead and priced its stock at that $17 per share price, raising $187 million. Today the stock has been trading north of $22 per share, after opening at $23.56.
Okta’s closing price today was up 38.3 percent from its IPO price and down 0.21 percent from today’s opening price.
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Okta’s IPO is reminiscent of Snap’s in the sense that the stock started trading considerably higher than the IPO price. The social media company had set its stock price at $17 a share, closing the day at $24.48. Tech companies seem to be riding the IPO wave this year, with other names like Alteryx and Mulesoft entering the public markets in Q1. Alteryx, Mulesoft, and Snap chose to be listed on the New York Stock Exchange (NYSE) this year, while Okta opted for the Nasdaq. Yext, which has filed for its IPO, also went with the NYSE.
According to NVCA’s and PitchBook’s latest Venture Monitor report, the median IPO capital raise in Q1 of 2017 was $104 million, the highest figure in 12 years.
Goldman Sachs, J.P. Morgan Securities, and Allen & Co. are the lead underwriters for Okta’s public offering. Pacific Crest, Canaccord Genuity, and JMP Securities are acting as co-managers.
Founded in 2009, the San Francisco-based company raised $231.5 million in venture capital through investors like Andreessen Horowitz, Greylock Partners, Khosla Ventures, and Sequoia Capital.
