(Of course, the IPO adds background on the market)
October 14 (Businesshala) – Shares of GitLab Inc opened nearly 22% above its offer price in its Nasdaq debut on Thursday, giving the software development platform a market capitalization of $13.48 billion.
The company’s stock opened at $94.25, compared to an initial public offering price of $77 per share.
The company, whose clients include Nvidia Corp., Siemens AG and Goldman Sachs Group Inc., sold 8.42 million shares in its IPO. A selling stockholder affiliated with co-founder and CEO Sitsse Sijbrandij sold 1.98 million shares.
The IPO raised approximately $801 million in total. It was priced well above the high end of the $66 to $69 price range GitLab had previously marketed.
Software and technology companies such as UiPath Inc and Coupang Inc have made strong starts in the US market over the past year, thanks to a strong investor appetite for high-growth companies.
But the IPO market has slowed in recent weeks as concerns over inflation and volatile trading have forced some companies to delay their listing plans.
Goldman Sachs & Company, JP Morgan and BofA Securities were the principal underwriters for the GitLab offering. (Reporting by Niket Nishant and Praveen Paramasivam in Bengaluru; Editing by Shailesh Kuber and Aditya Soni)