In a good sign for Okta's IPO on Friday, the company priced its shares high with a $1.5 billion valuation

Todd McKinnon OktaBusiness InsiderTodd McKinnon, cofounder, Okta

The second big enterprise tech IPO of the year will take place on Friday and early signs are looking good.

Okta initially said it would price shares between
$US13-$US15 per share, then raised its range to $US15-$US17 earlier this week and on Thursday officially settled on a price of $US17 per share.

That puts the Okta’s market value at $US1.54 billion, which is above the $US1.2 billion valuation it had as a private company — good news for its investors as well as for other highly valued private tech companies looking at the public markets.

Okta plans to sell 11 million shares on Friday, which will raise $US187 million, and it’s already baked-in a second offering, giving the underwriters a 30-day option to purchase up to 1.65 million more shares and bringing the total amount of money it could raise to just over $US215 million.

We’ll see if investors bite, just like they liked did for the first enterprise tech IPO this year, MuleSoft. Shares of MuleSoft popped 50% opening day and have stayed well above its $US17 opening price ever since.

Okta will trade on the Nasdaq under the stock ticker “OKTA.”

Okta’s financials show growing revenue, and a narrowing loss (thanks to increased sales and marketing):

  • Revenue of $US160 million in fiscal 2017, up 86% from roughly $US86 million in 2016.
  • Gross profit (before sales, admin and R&D expenses) of about $US104 million in 2017, up from about $US50 million in 2016.
  • Net loss of about $US84 million in 2017, compared to $US76 million in 2016.
  • In the ramp up to the IPO, Okta cranked up its sales and marketing expense to about $US119 million in 2017 from about $US78 million in 2016.

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