GitLab (GTLB) raised $801 million with an initial public offering that far exceeded expectations for the provider of software development tools. The GitLab IPO began trading Thursday.
The company priced 10.4 million shares at $77, well above the estimated price range of $66 to $69. GitLab originally planned to offer shares at $55 to $60. The pricing gave GitLab a valuation of $11 billion.
Shares popped 22.7%, near 94.50, during afternoon trading on the stock market today.
The company provides development and collaboration tools that can speed up software creation. Its software “aims to allow teams to collaborate and work together to shorten the development life cycle and evolve from delivering software on a slow, periodic basis to rapid, continuous updates,” the company said.
In addition, it said, “Having all teams on a single application with a single interface represents a step change in how organizations plan, build, secure, and deliver software.”
GitLab IPO Filing: Revenue Nearly Doubled
For the six-month period ended July 31, GitLab reported revenue of $108 million, almost double that of the year-ago period. It reported a net loss of $69 million, compared with a net loss of $43.5 million, according to the GitLab IPO filing.
In another IPO this week, AvidXchange (AVDX) raised $600 million via an IPO that gave it a market valuation near $5 billion. The AvidXchange IPO began trading Wednesday. AvidXchange provides accounts payable automation software and payment solutions for middle-market businesses and their suppliers.
Likely IPO candidates in the fourth quarter include electric-vehicle maker Rivian, mobile payment company Stripe and grocery delivery company Instacart. Others include Indian online retailer Flipkart and semiconductor company GlobalFoundries.
Recent IPO stocks are where you often find some of the market’s best stocks. New IPOs are typically in their early stages of growth. Big earnings growth potential is generally what fuels an IPO stock’s price performance. IBD’s IPO Leaders section has special screening criteria to find up-and-coming stocks with strong fundamental and technical traits.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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