New Relic raises IPO share price, market cap nears $1 billion

It’s beginning to look like a very lucrative Christmas for some Bay Area startups planning a holiday IPO.

For the second time in as many days, a Silicon Valley tech startup has raised its initial-public-offering price, hoping to take advantage of the healthy market and raise a sizeable sum of cash before the year ends. On Tuesday, New Relic, a San Francisco-based big data firm, raised its per-share price range to $20 to $22, up from $18 to $20. At the new price, the company, which makes cloud-based software for businesses to collect, store and analyze massive amounts of data in real-time, will raise up to $110 million.

At the midpoint of the price range, New Relic would have a market value of $967 million. The startup is offering 5 million shares when it begins trading on Friday; it will set an official per-share price on Thursday after the markets close.

On Monday, San Francisco-based Lending Club updated its IPO share price by $2 per share, raising the range from $10 to $12 each to $12 to $14 per share. The company will sell 57.7 million shares when it begins trading as a public company on the New York Stock Exchange Thursday, raising up to $807.8 million.

New Relic and Lending Club will be joined by Hortonworks of Palo Alto to round out a trio of big-name IPOs this week. Hortonworks, another big data startup, is expected to raise $84 million when it sells 6 million shares at $12 to $14 a share during its Wall Street debut on Friday. In all, 12 companies are expected to go public this week, as December shapes up to be an unusually busy month. IPOs are traditionally slow during the holidays because investors are focused on wrapping up their deals for the year and not making new ones. Last year, there were 12 IPOs for the entire month of December, according to market intelligence firm Ipreo.

 

Photo of New Relic office from blog.newrelic.com

 

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