Aussie Startup Makes A Fantastic Debut

Atlassian Corp has finally brought some cheer to the end of a dour year for technology public offerings with a 32% pop on its Wall Street debut. It has demonstrated that investors are eager to reward growing tech companies that can reliably turn a profit. Shares of the Australian software maker, which helps companies collaborate and manage their operations, ended their first day of trading at $27.78, up almost a third from the initial public offering price of $21.
The Sydney-based company closed out the day with a market value of $5.8 billion, well above its last private valuation of $3.3 billion last year.
According to IPO fund manager Renaissance Capital, the performance was impressive and shone some light on a bleak stretch for IPOs, on pace to have their worst year in terms of dollars raised since 2009. First-day returns from IPOs this year are in negative territory.
Jay Simons, Atlassian president and head of the company’s San Francisco office, said, it’s always hard to anticipate the enthusiasm in the market and there is a very small percentage of IPOs even in the last couple of years that have moved their price range up and then priced above the range.
Atlassian’s IPO raised $462 million after pricing just above the expected range of $19 to $20. It is the sixth-most highly valued IPO of the year.
Its strong debut signals that not all of the 145 tech unicorns, venture-backed private companies worth $1 billion or more, are overvalued. Atlassian, unlike most of those unicorns, makes a profit.

Leave a Reply

Your email address will not be published. Required fields are marked *