Shares of Amplitude Inc opened in its Nasdaq debut on Tuesday, up nearly 43 percent above its reference price, valuing nearly $5 billion for the benchmark-backed analytics company.
San Francisco-based Amplitude, which confidentially filed for direct listing in July, was valued at $4 billion after raising $150 million in June from Sequoia Capital and Singapore’s sovereign wealth fund GIC.
The company’s stock opened at $50 per share, above the reference price of $35 per share.
Amplitude provides data analytics tools that enable companies to optimize their products. Its clients include NBCUniversal, PayPal Holdings Ltd., Peloton Interactive Inc., and Instacart.
It has benefited from accelerated digital transformation during the pandemic, as companies seek to optimize customer experience online using analytical tools.
It reported revenue of $72 million for the first half of the year, a 56 percent jump year over year, compared to a loss of $16.5 million.
The seven-year-old company opted to go public via direct listing, an alternative to an initial public offering that has gained traction among companies since being pioneered by Spotify Technology SA in 2018.
Direct listing allows companies to be listed on the stock market without selling shares. They set a reference price but no shares are sold upfront at that price, unlike an IPO where shares are sold to institutional investors at a set price.
“Traditional IPOs are seriously underpriced companies,” said Spencer Skates, co-founder and CEO of Amplitude. “This year is a great window for companies to go outside. It’s about as fast as we can.”
Investors see Amplitude’s strong debut as a catalyst for other tech companies looking to go public.
“This is a watershed moment for direct listings. I think the whole market is looking at Amplitude to see how it does, as it looks like many software companies will go public in the next 12 to 18 months in terms of size, growth, and not well-known household names. Being an early investor in Amplitude, said Neeraj Aggarwal, Partner, Battery Ventures.
Morgan Stanley advises Amplitude on direct listings.
by Crystal Hu and Echo Wango
This News Originally From – The Epoch Times