On Tuesday, New York-based tech startup Yext Inc. has priced its upcoming initial public offering between $8 and $10 per share, according to its updated S-1 filing with the SEC. The company is planning to sell 10.5 million shares of common stock, and minus fees, hopes to raise $84 million at the bottom range to $105 million at the top of the range.
Depending on how its IPO goes, Yext could see a valuation upwards of $870 million if shares are priced at the top end. The company’s shares will trade on the New York Stock Exchange under the ticker symbol “YEXT.”
Yext is looking to be the next big tech offering following that of Snapchat parent Snap Inc. SNAP, whose blockbuster IPO rocked the market earlier this month. Though it’s not a household name like Snap’s popular messaging app, and it still remains unprofitable, Yext hopes to capitalize on the fast-growing cloud-computing industry.
Founded in 2006, Yext is a tech company that helps other businesses manage their listings on directory sites like Yelp YELP, Facebook FB, Alphabet’s GOOGL Google Maps, Apple’s AAPL Siri, and Foursquare. Its client list includes big names like Best Buy BBY, Marriot MAR, and McDonald’s MCD.
In its S-1 filing, Yext describes itself as a “knowledge engine,” and its platform “lets businesses manage their digital knowledge,” like menu details in the food service industry, health insurances accepted by a physician in the healthcare industry, or ATM locations in the finance industry, all in the cloud.
Yext has raised $117.8 million in venture funding to date, and as of January 31, 2017, the tech startup reported revenue of $124 million, an increase of 38% from the prior year. Its losses, however, increased from $26.5 million to $43.2 million in the same time frame. “We have a history of losses and may not achieve profitability in the future,” Yext warned in its filing.
Underwriters for Yext’s offering are Morgan Stanley, JPMorgan, RBC Capital Markets, Pacific Crest Securities, and Piper Jaffray.
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