A pleasant exception: Atlassian's outstanding IPO results exceeded the company's expectations
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, an Australian IT company Atlassian, expected public investors to be favorable to it. But the results of the IPO exceeded the expectations of even the company itself.
Atlassian raised $ 462 million by placing 22 million shares on NASDAQ for $ 21 each. Thus, the company was valued at $ 5.8 billion. A week ago, the stock price was forecast at $ 16.50–18.50, then the company adjusted the forecast to $ 19–20. In addition, the number of actually placed shares was higher than expected by 10%.
According to Renaissance Capital, Atlassian became the first company since the beginning of July to place shares on the stock exchange at a price above the upper limit of the planned interval.
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Investing in technology companies requires great care. Significantly increased investment and costs of such companies. But after several years of very rapid growth, many start-ups still have no clear way of making a profit, venture capitalist Bill Gurli said. And now, venture funds have a rather unfortunate period, which is associated with a low level of return on investment. Many private companies refuse to IPO, and startups cost much more than what larger technology companies can count on.
No matter how much a private company is valued, investors cannot return their investments until the startup has an IPO. The company's liquidity can be the only real assessment of any startup, according to Gurli, and all private evaluations are just numbers on paper.
Venture capitalists are increasingly talking about IPO, as a kind of "downward round" of financing. Indeed, immediately after an IPO, or after some time, the start-up score often falls and is significantly lower than in private rounds. This has happened with companies such as Square , Facebook , Groupon and Zynga . Some IPO companies had to lower the bid price to attract cautious buyers.
On average, in 2015, investors who participated in an IPO in the United States lost 3.6% on this, their losses in the IT segment amounted to 1.4%.
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.
In the hands of the founders (Scott Farquhar and Mike Cannon-Brookes) Atlassian now has a huge amount gained from the placement. After all, apart from them, the company has practically no co-owners.
In 2015, there were six IPOs of high-tech companies, where the offering price turned out to be higher than planned, says Matthew Kennedy, an analyst at Renaissance Capital. If something unforeseen does not happen, then this year will end on a good note, he hopes.
Atlassian raised $ 462 million by placing 22 million shares on NASDAQ for $ 21 each. Thus, the company was valued at $ 5.8 billion. A week ago, the stock price was forecast at $ 16.50–18.50, then the company adjusted the forecast to $ 19–20. In addition, the number of actually placed shares was higher than expected by 10%.
According to Renaissance Capital, Atlassian became the first company since the beginning of July to place shares on the stock exchange at a price above the upper limit of the planned interval.
')
Investing in technology companies requires great care. Significantly increased investment and costs of such companies. But after several years of very rapid growth, many start-ups still have no clear way of making a profit, venture capitalist Bill Gurli said. And now, venture funds have a rather unfortunate period, which is associated with a low level of return on investment. Many private companies refuse to IPO, and startups cost much more than what larger technology companies can count on.
No matter how much a private company is valued, investors cannot return their investments until the startup has an IPO. The company's liquidity can be the only real assessment of any startup, according to Gurli, and all private evaluations are just numbers on paper.
Venture capitalists are increasingly talking about IPO, as a kind of "downward round" of financing. Indeed, immediately after an IPO, or after some time, the start-up score often falls and is significantly lower than in private rounds. This has happened with companies such as Square , Facebook , Groupon and Zynga . Some IPO companies had to lower the bid price to attract cautious buyers.
On average, in 2015, investors who participated in an IPO in the United States lost 3.6% on this, their losses in the IT segment amounted to 1.4%.
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.
In the hands of the founders (Scott Farquhar and Mike Cannon-Brookes) Atlassian now has a huge amount gained from the placement. After all, apart from them, the company has practically no co-owners.
In 2015, there were six IPOs of high-tech companies, where the offering price turned out to be higher than planned, says Matthew Kennedy, an analyst at Renaissance Capital. If something unforeseen does not happen, then this year will end on a good note, he hopes.
Source: https://habr.com/ru/post/297206/
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