Okta, the Cloud-Based Identity Management firm, soared more than 38 percent, raising $187 million in additional capital, and its valuation topped $2 billion on its first day of trading in the NASDAQ. The newly minted traded shares closed the day at $23.51, up 38.3 percent, after trading in a range between $22.60 and $24.50.
Silicon Valley venture firms owned nearly two-thirds of the company’s private shares going into the initial public offering. Sequoia Capital is the biggest shareholder, with a 21.2 percent stake. A16Z is second, with 19.6 percent, followed by Greylock Partners, with 16.9 percent, and Khosla Ventures, with 8.1 percent. Okta’s chief marketing officer, Ryan Carlson, says the additional capital from the IPO would strengthen the company’s focus on helping its users connect internally within their organizations and externally with customers and partners.
Okta is the second tech IPO from the Bay Area so far in 2017, following the slowest year for such Wall Street debuts in 2016 since the height of the banking crisis of 2008. Investors’ reaction to Okta’s stock will be closely monitored by other companies considering IPOs. The next big anticipated IPO is a Palo Alto-based Big Data software company, Cloudera, which could come later this month, or early May.
The other company from the Bay Area that has gone public this year is San Francisco-based Mulesoft (MULE), which shot up more than 40 percent in its first trading day in Mid-March and has held on to most of its gain, thus far.