Apigee, a fast-growing San Jose software company, updated its IPO filing on Monday with a price range for its upcoming stock offering that could raise up to $92 million in the firm s Wall Street debut.
Apigee set the price for shares at $16 to $18. At the midpoint of that range, the company would raise nearly $87 million and would have a market capitalization of $494.7 million. If it sold shares at the top of the range — $18 — its market cap would exceed $523.8 million.
Apigee — which provides tools to support and manage technology known as application program interface, or API, the software that helps connects applications on the Internet — is selling 5.1 million shares. Apigee will set the final price share on the eve of its Wall Street debut; there is no date yet for the public offering. The firm will trade on the Nasdaq under the ticker symbol APIC.
Apigee first filed its IPO paperwork on March 20. The public offering is expected to be one of the largest San Jose-based IPOs in years. Deloitte last year named Apigee the fifth-fastest growing in North America among technology, media, telecommunications, life-sciences and clean-technology firms; it posted 17,384 percent revenue growth from 2009 to 2013. The company recently moved from Palo Alto to a new office on Almaden Boulevard.
Apigee s public offering will also help break the cold spell that has settled over the IPO market in recent months. After 2014 brought the most active IPO year in 14 years, the first quarter of this year has been pitiful. Thirty-four companies raised $5.4 billion during the first quarter, just half the number of IPOs and half the dollar amount raised in the same time period a year before. Based on dollars raised, it was the worst quarter for IPOs since 2011.
Apigee is a leader in helping companies create and operate their APIs, which is software to help connect a company s services, content and data to developers. Developers, in turn, use the APIs to create new apps so consumers can interact with that company over the Web and mobile devices. For instance, when someone uses Yelp to look for the closest Italian restaurant, APIs are powering that experience. Apigee s tools help make these applications fast and safe from cyber threats.
Apigee s total revenue grew from $27.6 million in 2012 to $52.7 million in fiscal 2014 — a 91 percent increase. But as so often happens with fast-growing companies, Apigee s losses have been soaring, from $8.3 million in 2012 to $60.8 million in 2014. During that same three-year period, its operating expenses jumped nearly four-fold from $24.8 million to $83.7 million
