Braze IPO: What to Know About Price Terms and More

Customer engagement platform Braze is gearing up for its IPO. Based in New York, the brand is targeting a multi-billion-dollar valuation and pricing its shares accordingly.

Here's a rundown of what investors should know about the upcoming Braze IPO, including the stock price and how much Braze wants to raise overall.

As of Nov. 8, Braze has set the terms for its upcoming IPO. The move comes weeks after the company first started the IPO process. Braze initially filed its form S-1 (or registration statement) with the SEC on Oct. 22 but hadn't filled in the blanks of its IPO terms just yet. Now, the process is moving forward swimmingly.

The bookrunners for the Braze IPO include Goldman Sachs, JPMorgan, and Barclays.

Amid the IPO process, Braze is seeking an enterprise value of $5.41 billion. The company has completed its Series E funding round and raised a total of $175.1 million since its founding in 2011.

As of the most recent funding round in 2018, Braze was worth $850 million. At the time, the investors included Spark Capital, Cross Creek, and Meritech Capital. Braze's updated valuation strays big time into the billions, but experts say that the niche marketing campaign management software industry could be worth as much as $19.4 billion in 2024.

Braze hopes to raise $402 million in its IPO. The company is offering 6.7 million Class A common stock shares in the IPO. Each share is poised to cost between $55 and $60 from the jump.

Additionally, existing shareholders are offering 1.3 million shares for an additional $78 million in capital.

Following the IPO, Braze is projected to have 90.26 million outstanding Class A and B shares combined, according to MarketWatch.

Braze's registration statement clarifies the company's financials for investors. In the six months ending July 31, Braze recorded $25.1 million in net losses on $103.6 million in revenue.

The revenue and losses are up YoY—with the previous year's same six-month period experiencing $12.4 million in losses and $67.9 million in revenue. That growth is likely why Braze is seeking such a high valuation.

For Braze, the next step in the IPO process will be to set a firm stock price, likely somewhere in the provided range. Given that it just started the IPO process about 2.5 weeks ago, investors can expect the Braze IPO to move swiftly, likely publicizing before the year's end.

The timing is good. The three major indices are currently on a five-week streak of gains. Plus, the Renaissance IPO ETF (IPO) is up 7.2 percent over the last month, which means that public offerings are heating back up after a cooling period.

Braze plans to go public on the Nasdaq Exchange (known for its focus on the tech secretary). The company will position itself under the ticker symbol "BRZE."