IPO of the Week: Coupa

Founded in 2006 and headquartered in San Mateo, CA, Coupa Software provides a cloud-based spend management platform for businesses. The platform consists of procurement, invoicing, expense management and other supporting modules that help companies to manage spend.

Coupa Software, follows most of the Software-as-a-Service (SaaS) business model,  generates the majority of revenue from the subscription to the spend management platform. The company also derives professional services revenues from implementation and configuration services.

On 10/6/2016, Coupa went public on Nasdaq led by Morgan Stanley, J.P. Morgan, Barclays, and RBC. The IPO was priced at $18.00 per share, high-end of the raised range. With a full subscription of 7.4 million increased offered shares and 15% overallotment option fully exercised, the company was valued at ca. $886 million. The stock opened at $35.00/share, a 94.4% jump, but closed the first day down at $33.28/share.