CrowdStrike priced its IPO 62% above the midpoint, the highest in 7 years

CrowdStrike (CRWD) priced its IPO at $34, a 62% premium to the midpoint of the original $19 to $23 range. That is the largest increase since Splunk went public in 2012, and priced 89% above its midpoint. The company raised $612 million at a valuation of $7.7 billion.

Largest IPO Price Increases

To see the enhanced CrowdStrike IPO profile, perform data screens, and track IPO events on our "Master Calendar," sign up for a free 7-day trial of IPO Pro, the single most effective IPO data platform you'll ever need.

Start a Free Trial of IPO Pro

While the other names in the top five have a poor track record post-IPO (only Splunk has outperformed), many others have priced well above the range and soared. The next 10 IPOs with the highest price vs. midpoint include high-flyers like Veeva Systems, Zillow, Wingstop, Zscaler, Juno Therapeutics, and Spark Therapeutics.

Demand was high, as expected. After CrowdStrike priced 62% above its original midpoint, the cloud-based cybersecurity platform popped 70% on its first day, the latest sign of investor appetite for high-growth software providers. Recent IPOs Zoom Video (ZM) and PagerDuty (PD) also trade at nosebleed valuations, up 189% and 130%, respectively, from the offer price.

These are strong companies. They have fast growth and massive market opportunities. But at these levels they also appear to be priced to perfection.

The article CrowdStrike priced its IPO 62% above the midpoint, the highest in 7 years originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.

Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Latest IPOs Videos

    Telos Corporation Rings the Closing Bell in Celebration of its IPO

    Telos Corporation rings the Nasdaq Closing Bell In celebration of its initial public offering, John B. Wood, Chief Executive Officer & Chairman of the Board, alongside the Company’s team in a virtual bell ringing ceremony.

    Nov 19, 2020

    Renaissance Capital

    Renaissance Capital is the global leader in providing pre-IPO institutional research and management of IPO-focused investment products.

    Learn More