© Reuters announces a screen live list outside of Nasdaq Market in New York City’s Times Square, September 2, 2021. Reuters / Brendon McDermide
(Modifies ‘Benchmark-Supported’ to ‘Benchmark-Supported’ in the first paragraph)
By Crystal Hu and Echo Wang
(Reuters) – Amplified Inc. shares opened about 43% of their reference price during their Nasdaq debut on Tuesday, valuing about 5 5 billion for a benchmark-backed analytics company.
The San Francisco-based amplitude, which was secretly filed for direct listing in July, was valued at 4 4 billion after Sequoia Capital and Singapore’s Sovereign Wealth Fund raised 150 150 million from GIC.
The company’s stock opened at $ 50 per share, up from a reference price of 35 per share.
Amplitude provides data analysis tools that enable companies to optimize their products. Its customers include NBCUniversal, PayPal (NASDAQ 🙂 Holdings Ltd, Peloton Interactive (NASDAQ 🙂 Inc and Instacart.
It has benefited from accelerated digital conversions during epidemics, as companies try to optimize the online customer experience using analytical tools.
It earned $ 72 million in the first half of the year, compared to a loss of% 16.5 million, up 16% year on year.
The seven-year-old company has chosen to go public through a direct listing, an alternative to an initial public offering that has since gained traction among companies. Spotify technology SA (NYSE 🙂 pioneered it in 2018.
In direct listing, companies are allowed to list in the stock market without selling shares. They set a reference price but no shares are sold in advance at that price, as opposed to an IPO where shares are sold to institutional investors at a fixed price.
“Dition-themed IPO is a deadly low-cost company,” said Spencer Skates, co-founder and CEO of Amplitude, who was a proponent of direct listing. “There’s a great window for companies this year. We can do it as fast as we can.”
Investors see the strong debut of expansion as a catalyst for other technology companies looking for ways to reach the public.
“It’s a watershed moment for direct listing. I think the whole market is looking at the breadth of how it does, because it’s a lot of software companies that will go public in the next 12 to 18 months in terms of size, growth and not being a well-known family name.” Neeraj Agrawal, a partner at Battery Ventures, said the initial investor in the expanse.
Morgan Stanley (NYSE 🙂 suggested widening the list directly.
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