On May 10, 2021 Procore Technologies – construction tech unicorn set a price range for its IPO.
- Detailed instructions how to participate in Procore (pre-IPO, offering price) see below👇
What is an IPO and how it works
IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.
To go public, a company must have a track record of growth and other favorable results and hire an investment bank (Goldman Sachs, J.P. Morgan, Barclays, Jefferies in Procore case) to come in and underwrite the IPO. The underwriters also performed due diligence and verified financial information and business model.
Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company with underwriters' help sets an initial price and date for the stock to begin trading on a stock exchange.
Company Profile and Financial Indicators before Procore IPO
Using the Procore platform, developers can streamline their workflow and foster collaboration among all project stakeholders. Bidding for products and services, human resource management, building knowledge models, and financial management are only a few of the services available to clients. In addition, the platform enables the software's integration with other internal client systems.
The company has a client base of over 10,000 people. Procore Technologies began with four products and now provides a total of thirteen. The program is available on a subscription basis, with the number of subscribers and sales from the business increasing year after year. For example, revenue in 2019 was $289.2 million, and in 2020 it increased by 38 per cent to $400.3 million.
The company was able to secure $150 million in private funding in 2020. For the entire time, the total sum of attracted investments was $648.9 million. Among the investors are ICONIQ Strategic Partners, Bessemer Venture Partners, Tiger Global PIP 11, and D1 Master Holdco.
The construction industry is one of the least digitized, and cloud technologies are not being adopted as quickly as they are in other industries. This, combined with the scarcity of complex software for construction firms, bodes well for the business. The potential market for Procore Technologies' products is currently estimated to be worth $9.4 billion.
- Exchange: NYSE (trading as PCOR)
- IPO Size: $591,9M
- Market Cap: $8B
How to Buy Procore Stocks Before the IPO (Offering Price)
In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.
Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in Procore IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy Procore shares when the company goes public via a commission-free trading app like eToro.
🚨 Detailed Instructions How to Participate in the Procore IPO before public trading:
Below we share the instruction how to participate in the approaching Procore IPO using Freedom Finance (Freedom24 platform). This marketplace is chosen as an example because Procore is already listed there.
- Pros: almost all high-profile IPOs are available for participation via Freedom Finance, no eligibility requirements, no number of previous trades needed and low minimum investment amount for participating in an IPO.
- Cons: the user interface of the platform is a bit outdated.
* Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account — you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
- Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- 💡 Tip: It's recommended to deposit your account in advance. Often the exact IPO date is undefined until the last day. You may have a short notice for participation and account deposits also takes time for processing. Also, sometimes Freedom sends last-minute IPO offer when you have 2 hours to participate.
- Submit a request to participate in the IPO — when applications are open select Procore and click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
- Wait for allocation — The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
- Start of trading — With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will start — a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
- Closing your trade — At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion — leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the ‘Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.
Is investing in IPOs profitable?
Not always. The average return at the end of the lock-up period is 72%, past IPOs data.
When is the Procore IPO date?
May 19, 2021
What is Procore IPO price range?
$60 to $65 per share
How to Invest in Procore after the IPO date (opening price)?
In what currency Procore IPO and post-IPO shares will be traded?
The Procore IPO and stock trading currency will be USD.
If you have funds in another currency the cheapest way to convert your currency is to use the mid-market rate (that’s the one you’ll find on Google) which can be done via a fintech service like Wise. Banks may add hidden markups to their exchange rates - charging you more without your knowledge. And if they have a fee, they charge you twice. Wise never hides fees in the exchange rate.
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What is the Procore (stock symbol)
The stock ticker for Procore will be PCOR
Procore Registration Statement on Form S-1
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