MongoDB has finished up what is essentially the final step in going public, pricing its IPO at $24and creating $192 million in the process.
The company will debut on the public marketplaces tomorrow and will once again test the waters for companies that are looking to build full-fledged industries on the back of open-sourced software. MongoDB offer open-sourced database software that can be pretty attractive to early-stage startups as they look to get off the ground, and then look to convert those companies( and larger ones) to paying customers by offering sophisticated tools. It’s a situation not unlike Cloudera, which ran public earlier this year.
The company is selling 8 million shares, with an option for underwriters to purchase an additional 1.2 million shares. MongoDB may create as much as $220.8 million if the IPO includes that additional allotment, also called the greenshoe. At $24 per share, the company would be valued at around $1.2 billion.
While the company appears to be growing, its losses have also been quite steady — and it is, to be sure, burning a lot of cash. That’s likely why it picked up a valuation of around $1.2 billion. MongoDB at one point was able to hit a valuation of $1.6 billion, but the challenges of a market like MongoDB are clearly a harder sell for Wall Street. Still, its initial public offering is an upward revision after the company previously sought to price the market share somewhere between $20 and $22, which entails there was a good quantity of interest.