MS - HCP Stock IPO: 10 Things to Know as HashiCorp Starts Trading Today

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Today, fans of cloud companies have another name to track — and potentially buy — as Hashicorp (NASDAQ:HCP) makes its public debut on the Nasdaq exchange. Hashicorp provides open-source tools for developers and operators to automate public and private cloud-computed infrastructure. Indeed, many investors are welcoming the HCP stock IPO (initial public offering) as it hits the market today.

So, what should investors know about this market debut?

Well, the cloud company, which was founded in 2012, will raise $1.2 billion in its IPO, as it plans to sell 15.3 million shares for $80 each. Additionally, the company will trade under the ticker HCP.

But there’s lots more to know than just that. With that said, let’s take a deeper look into the Nasdaq’s newest participant.

10 Things to Know as HCP Stock Hits the Market

1. Hashicorp was founded by Mitchell Hashimoto and Armon Dadgar in 2012. The two met while studying computer science at the University of Washington.
2. The company’s products are based on “the need to have consistent workflows to provision, secure, connect, and run infrastructure and applications across multiple public and private cloud environments.” Furthermore, the company’s primary products are called Terraform, Vault, Consul and Nomad. These products can be adopted individually but are also designed to work together as a stack. Additionally, the total addressable market (TAM) for these products in 2026 is an estimated $72.5 billion.
3. Hashicorp reported a net loss of $62 million on revenue of $224 million for the nine months ended Oct. 31.
4. As of Oct. 31, Hashicorp had 595 customers with annual reoccurring revenue (ARR) of $100,000 or more.
5. Based on the IPO price of $80, Hashicorp is expected to have a market value of $14 billion. Last year, Hashicorp raised $75 million in a Series E funding round that valued the company at $5.1 billion.
6. Hashicorp identifies three key industry trends that underpin its business: digital transformation, cloud adoption and the proliferation of the multi-cloud.
7. Furthermore, Hashicorp has had its products downloaded over 100 million times throughout fiscal year 2021. The amended S1 prospectus states that more than 11,500 organizations have downloaded at least one Hashicorp product since the company’s inception.
8. Additionally, Hashicorp boasts 340 customers from the Forbes Global 2000 list. As of Oct. 31, Hashicorp serves a total of 2,392 customers.
9. The amended S1 prospectus details several risk factors, such as sustaining profitability and cash-flows, reliance of revenue on subscriptions, a limited operating history, and technological barriers to entry for new markets. The company expects net losses in the foreseeable future as it “invest[s] into the market opportunity ahead of us.”
10. Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS), and J.P. Morgan (NYSE:JPM) will act as the leading book-runners for the offering. This is beneficial to know, as these banks could make biased price targets once the coverage blackout period ends.

On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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