Testing by publicity: Atlassian will hold one of the most successful IPOs this year
Despite the difficult situation around technology companies in the IPO market, the largest private firms are still attempting to publicize. The developer of the legendary Task Manager JIRA Australian IT-company Atlassian hopes that public investors will be to her favor. The company plans to go IPO by the end of the year.
Atlassian set the price per share in the range of $ 16.50 to $ 18.50. The upper limit of the company's value is estimated at $ 3.8 billion. Last year, the company's valuation in the private market was $ 3.3 billion. With such indicators, Atlassian's IPO may become one of the most successful - when compared with the results of the placement of other technology companies this year.
Indeed, one of the main prerequisites for failure of an IPO is a sharp decline in the company's valuation before public offering. This happened , for example, with the Square payment service.
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Square shares at the finish line before the IPO, experts estimated at $ 11– $ 13. The company's capitalization fell to $ 4.2 billion. "Megamind" wrote that in October Square was estimated at $ 6 billion.
At the IPO, Square received a valuation of $ 2.9 billion. This is more than two times less than the October estimate. The price per share fell below the minimum of $ 11 and amounted to $ 9.
Unlike many tech start-ups that suffer losses, Atlassian continues to increase profits. Moreover, the company has remained profitable for as many as 10 years. Separately, it is worth noting that the company developed independently, without third-party investments. The participation of such funds as Accel Partners , T. Rowe Price Group and Dragoneer Investment Capital , was limited to the purchase of insignificant shares. Atlassian all 13 years grows exclusively at the expense of word of mouth and does not keep in the staff of sales managers.
If the company will sell shares at $ 18.50, it will be able to bail out about $ 370 million at an IPO. But the price corridor may change a day before the placement, reminds Business Insider. Everything will depend on how much public investors are interested in the company. In the case of a successful IPO, in the hands of the founders (Scott Farquhar and Mike Cannon-Brookes) Atlassian will be almost the entire considerable amount gained from the placement. After all, apart from them, the company has practically no co-owners.
In addition to the attractive IPO prospects, Atlassian already has a very strong trump card in his hands. A commercial success came to the company due to the demand for its products and services in Silicon Valley that had risen to heaven. After all, it is one of the world centers for the development of the IT industry in general and software development in particular.
Nevertheless, the competition remains fairly tough, and the Atlassian flag still stands on all the fortresses. JIRA holds its ground tight. But launched in 2010 and purchased in March 2012 by Atlassian, the corporate messenger HipChat lost in many markets to the rival Slack .
Founder and CEO of Slack, Stuart Butterfield, said in an interview with The Australian Business Review that the company had developed an “IPO preparation” program. The essence of the program is to be fully armed when the time comes X and Slack will consider it necessary to apply for a public offering.
He also noted that Slack can reach an IPO no earlier than 18 months. And this provided that all the stars converge as it should.
Atlassian set the price per share in the range of $ 16.50 to $ 18.50. The upper limit of the company's value is estimated at $ 3.8 billion. Last year, the company's valuation in the private market was $ 3.3 billion. With such indicators, Atlassian's IPO may become one of the most successful - when compared with the results of the placement of other technology companies this year.
Indeed, one of the main prerequisites for failure of an IPO is a sharp decline in the company's valuation before public offering. This happened , for example, with the Square payment service.
')
Square shares at the finish line before the IPO, experts estimated at $ 11– $ 13. The company's capitalization fell to $ 4.2 billion. "Megamind" wrote that in October Square was estimated at $ 6 billion.
At the IPO, Square received a valuation of $ 2.9 billion. This is more than two times less than the October estimate. The price per share fell below the minimum of $ 11 and amounted to $ 9.
Unlike many tech start-ups that suffer losses, Atlassian continues to increase profits. Moreover, the company has remained profitable for as many as 10 years. Separately, it is worth noting that the company developed independently, without third-party investments. The participation of such funds as Accel Partners , T. Rowe Price Group and Dragoneer Investment Capital , was limited to the purchase of insignificant shares. Atlassian all 13 years grows exclusively at the expense of word of mouth and does not keep in the staff of sales managers.
If the company will sell shares at $ 18.50, it will be able to bail out about $ 370 million at an IPO. But the price corridor may change a day before the placement, reminds Business Insider. Everything will depend on how much public investors are interested in the company. In the case of a successful IPO, in the hands of the founders (Scott Farquhar and Mike Cannon-Brookes) Atlassian will be almost the entire considerable amount gained from the placement. After all, apart from them, the company has practically no co-owners.
In addition to the attractive IPO prospects, Atlassian already has a very strong trump card in his hands. A commercial success came to the company due to the demand for its products and services in Silicon Valley that had risen to heaven. After all, it is one of the world centers for the development of the IT industry in general and software development in particular.
Nevertheless, the competition remains fairly tough, and the Atlassian flag still stands on all the fortresses. JIRA holds its ground tight. But launched in 2010 and purchased in March 2012 by Atlassian, the corporate messenger HipChat lost in many markets to the rival Slack .
Founder and CEO of Slack, Stuart Butterfield, said in an interview with The Australian Business Review that the company had developed an “IPO preparation” program. The essence of the program is to be fully armed when the time comes X and Slack will consider it necessary to apply for a public offering.
He also noted that Slack can reach an IPO no earlier than 18 months. And this provided that all the stars converge as it should.
Source: https://habr.com/ru/post/296890/
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