The business software maker was expected to price its public offering on Wednesday night before its Thursday debut
The cloud-based software platform was scheduled to debut on the Nasdaq on Thursday under the ticker symbol JW. Last week, the company said it expected its offering price of $29 to $32 per share, which would have increased to $224 million for the New York City-based company.
At the high end of the range, Justworks would have been valued at around $2 billion.
JustWorks provides a central platform for small and medium-sized businesses to access benefits, payroll, human resources and compliance support. According to filings with the Securities and Exchange Commission, it has more than 8,000 customers nationwide.
The company’s total revenue for the fiscal years 2021 and 2020 ended May 31 was $982.7 million and $742.4 million, respectively. During the same period, it had gross profits of $106.1 million and $77.1 million, respectively.
Overall tech stocks have struggled so far this year. For example, the Nasdaq-100 Technology Sector Index is down 4.3% so far this year. By comparison, the S&P 500 is down 0.9%.
The year 2021 saw a record for IPOs but the tide has started to shift for startups. As 2021 ended, nearly two out of three companies that went public that year were trading below their IPO price.
Central banks have indicated that they will raise interest rates to curb inflation, which could reduce interest in riskier assets. Another headwind is the entry of IPOs into the market.