Just like Lyft, PagerDuty has increased the expected price range for its offering after first indicating a lower figure, likely indicating solid demand for the company's stock as it shops itself to potential investors. After first filing plans to sell its shares for between $19 and $21 each, PagerDuty has raised that range to $21 to $23 per share; the software provider still plans to offer just shy of 9.1 million shares in the flotation, meaning a midpoint pricing would raise about $200 million. It's believed a top-end pricing could result in a valuation of more than $1.7 billion.
Since first raising seed funding in 2010, the San Francisco-based PagerDuty has banked more than $170 million in venture backing, including a $90 million Series D at a $1.3 billion valuation last September that marked its first foray into unicorn territory.
The business is part of what's shaping up to be a very lucrative year for Andreessen Horowitz, which owns stakes in several unicorns that could soon go public; in PagerDuty's case, the firm has an 18.4% holding, making it the company's largest shareholder. Accel (12.3% pre-IPO stake) and Bessemer Venture Partners (12.2%) are among PagerDuty's other big-name backers. None of the three firms plan on selling any of their shares in the listing, per an SEC filing.
Andreessen Horowitz was also a significant investor in Lyft. After the ridehailing company first listed a range of $62 to $68 per share for its IPO last month, it later raised that span to $70 to $72, ultimately pricing at $72. That valued a16z's holding of about 15 million shares at more than $1 billion.
PagerDuty's listing likely won't be quite so profitable, but it will certainly be significant. A midpoint pricing of $22 per share would value a16z's post-IPO stake in the company at more than $260 million.
Not too bad for a business that—again, like Lyft—is losing money. While PagerDuty logged $117.8 million in revenue last year, representing YoY growth of 48%, the company also registered a net loss of $40.7 million. That's about in line with the company's previous fiscal year, when it logged a loss of $38.1 million.
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Related read: In Lyft IPO, a16z to make a killing