Braze’s IPO raises $520 million

New York-based customer engagement company Braze priced its initial public offering above a marketed range to raise $520 million. 

The company announced the pricing of its initial public offering of 8 million shares of Class A common stock at a price to the public of $65.00 per share. 

Based on the outstanding shares listed in its filing with the U.S. Securities and Exchange Commission, Braze would have a market value of $5.87 billion at the IPO price. 

The shares are expected to begin trading on the Nasdaq Global Select Market under the ticker symbol “BRZE” on Nov. 17, 2021, and the offering is expected to close on Nov. 19, 2021, subject to customary closing conditions.

Founded in 2011 by Bill Magnuson, Jon Hyman and Mark Ghermezian, Braze has reported massive revenue growth over the past two years, with $150.2 million in fiscal 2021 and $96.4 million in 2020, representing year-over-year growth of 56%, according to the SEC filing.

According to PitchBook, Braze was valued at $850 million after an $80 million funding round in 2018. 

In a letter to investors, co-founder and CEO William Magnuson said the coronavirus pandemic is accelerating digital transformation, including the importance of mobile technology to connect customers with brands.

“As consumers around the globe were staying at home, brands across all industries had to pivot their focus to delivering effective and engaging digital experiences,” Magnuson said. “We are confident that the transformative impact from 2020 will echo into the future, further validating our founding vision.”

The offering is being led by Goldman Sachs & Co. LLC, J.P. Morgan and Barclays. 

Written by Sophie Blake


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