Oct. 12 (Reuters) – Coding platform GitLab Inc is now aiming for a valuation of $ 10 billion in its US listing after raising the price range for its IPO as demand for high-growth companies remains robust despite recent stock market volatility.
The company announced Tuesday that it would sell its shares between $ 66 and $ 69 per share, compared to an earlier range of $ 55 to $ 60 per share. The IPO will raise $ 717.6 million at the high end of the new range.
GitLab’s move is the latest sign that the United States IPO market has not lost momentum, even as global stocks have been plagued by volatile fluctuations due to inflation concerns and debt-ridden Chinese real estate developer Evergrande. Continue reading
While volatility caused companies like exercise equipment maker iFIT Health & Fitness Inc and AEON Biopharma to withdraw their offerings, US IPOs have proven to be more resilient than those in Europe.
Including blank check firms, 777 US exchanges raised a total of $ 249.22 billion this year, according to Dealogic data.
Seven-year-old GitLab creates online tools to reduce software development cycle time – the time between assigning a task to a developer and completing it.
The company was founded in 2011 as an open source project by co-founder Dmitriy Zaporozhets in his home in the Ukraine and includes industry leaders such as Nvidia Corp (NVDA.O), Siemens AG (SIEGn.DE) and Goldman Sachs (GS. N) Customers.
GitLab, backed by Khosla Ventures, operates on a completely remote working model that allows the company’s 1,350 headquartered employees to work from more than 65 countries.
Goldman Sachs & Co, JP Morgan and BofA Securities are the lead underwriters for the offering.
Reporting by Niket Nishant in Bengaluru; Editing by Aditya Soni
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