Ibotta’s IPO opens sharply higher, hinting at warming public-market interest in tech shares | TechCrunch

Ibotta’s IPO opens sharply higher, hinting at warming public-market interest in tech shares | TechCrunch

Ibotta began its journey as a public company on Thursday. Opening at $117 per share.A big increase from its IPO price of $88, itself an increase from its proposed range of $76 to $84 per share.

And that's despite Pop increasing the size of his offering earlier in the week, with existing shareholders increasing their sales to just under a million shares.

Shares have not continued to climb in early trading, but are holding steady above their IPO price at around $100 at the time of writing.

The company left money on the table for “investors who are excited about (expanding) its third-party platform beyond just Walmart,” which has become a key partner for Ibotta and its current revenue stream. represents the bulk of the, said Nicholas Smith. Senior Research Analyst at Renaissance Capital, a pre-IPO research firm. Given that it started trading today at much higher than its IPO price, some critics might argue that it left too much money on the table, and could raise more money for itself.

Its successful launch is the third largest tech IPO in the United States this year, and the third in a row to be well priced and quickly traded. It's also the first half of a pair of technology offerings the data management and security company will list this month. Rubrik is expected to list its own shares next week. The two companies follow Reddit and Astera Labs out of the private markets after both the social media company and data center connectivity hardware play continued to trade above their IPO prices.

Investors' eagerness for Ibotta indicates that “there's a growing appetite for IPOs again,” Smith said, “especially in the tech space.”

However, don't pop the champagne for a tech IPO market comeback. Ibotta built its business sales model on a direct-to-consumer model, which has helped it reach profitability in recent times. Classic tech IPOs feature tech companies that are still in growth mode and in deep headlines.

Rubrik may be a better test of IPO appetite. Its products are in the world of data management and security, and the company is highly unprofitable and growing more slowly than Ibotta. That said, it's a strong cloud revenue story to tell. If it gets off to a good start, we may see more nonprofit unicorns try a shot at the public markets.

Smith agrees, calling the upcoming Rubrik IPO “an even bigger test” for the tech debut “given its weak current financial picture.”

We'll find out next week.

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