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Tech startup Yext prices its IPO at $8 to $10 a share - seeking a valuation of up to $870 million

Mar 28, 2017, 18:02 IST

Howard Lerman, CEO and co-founder of Yext.Yext

Yext, a tech startup that helps firms manage their listings on directory sites like Yelp, Apple's Siri, Facebook, Google Maps, and Foursquare, is pricing its forthcoming IPO at between $8 and $10 a share.

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The company's updated S-1 filing states that it plans to sell 10.5 million shares of its common stock, raising $84 million at the bottom of the range or $105 million at the top end, minus fees.

The company is setting itself a valuation of between $684 million and as much as $870 million if shares are priced at the top end and the banks working on the listing exercise an option to issue extra shares.

Yext's shares will trade on the New York Stock exchange, under the symbol "YEXT".

Morgan Stanley, JP Morgan, RBC Capital Markets, Pacific Crest Securities, and Piper Jaffray are the underwriters of Yext's offering.

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The company reported revenue of $124 million in the year to January 31, 2017 - an increase of 38% on the prior year. However, its losses widened from $26.5 million to $43.2 million.

Yext was founded in 2006 as an advertising services company and has raised $117.8 million in funding to date.

The company describes itself in its S1 as a "knowledge engine" that lets businesses manage their digital "knowledge" - such as menus, ATM locations, and retail hours - in the cloud and then sync that information to more than 100 directory services.

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