Australian software company Atlassian has achieved a rare victory in the US listings market of late: pricing its initial public offering at a higher than expected price.The group, whose customers include Facebook, NASA and Netflix, raised $462m by pricing 22m shares at $21 a piece, according to a person familiar with the deal, reports Nicole Bullock in New York.
That is above the indicated range of $19 to $20, which the company already raised earlier this week from the previous $16.50 to $18.50. It also boosted the number of shares on sale by 10 per cent.
The well-received deal caps what has been a tough year for US-listed IPOs including tech offerings, as financial volatility pressured the market and hot tech startups were drawn to lofty valuations on offer in private funding transactions.
Atlassian is the first US tech IPO to price above the range since July, according to Rennaissance Capital, before global stock markets fell amid concerns about the health of China’s economy and the potential ripple effects of a slowdown there across the globe.
Most companies have instead had to offer discounts to lure investors wary of declines in the aftermarket. On average, investors have lost 3.6 per cent buying US IPOs in 2015 and 1.4 per cent buying tech deals.
“The six tech IPOs of 2015 that priced above the range averaged a first-day pop of 36 per cent,” said Matthew Kennedy, an analyst at Renaissance Capital, which specialises in IPO research and investment. “Unless something goes awry, (it) looks like 2015 will end with a bright spot for tech IPOs.”