Coding platform GitLab leaps 23% in trading debut after pricing IPO at $77 a share

GitLab cofounders Dmitriy Zaporozhets and Sid Sijbrandij

Shares of GitLab leaped 23% in their Nasdaq trading debut, a market cap of $13.48 billion.
GitLab initially priced its IPO at $77 a share, putting its valuation at roughly $11 billion.
The company on Thursday opened at $94.25, exceeding the target range of $66 to $69 per share it set late Wednesday.
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Shares of GitLab leaped 23% in their trading debut on Thursday, giving the coding platform a market capitalization of $13.48 billion.

GitLab priced its initial public offering at $77 a share, putting its valuation at roughly $11 billion based on the outstanding shares listed in its regulatory filing. The company on Thursday, trading under the ticker GTLB, opened at $94.25.

The company’s largest shareholder is its co-founder and CEO Sid Sijbrandij, whose stake stands at 19%, according to the prospectus. He is followed by Khosla Ventures, which owns 14%, and then by ICONIQ, which owns 12%.

There were some doubters among Wall Street analysts following the strong debut, however.

“We believe GitLab is worth as little as $770 million or $5/share, which is 91% below the midpoint of the expected price range,” David Trainer, CEO at New Constructs, said in a note. “What is most worrisome about GitLab is that it competes with some of the largest technology companies in the world.”

The all-remote company – founded in 2011 by Sijbrandij and Dmitriy Zaporozhets – is best known for offering organizations a single platform to create a streamlined software workflow. Its product, called the DevOps platform, competes with Microsoft‘s Github.

GitLab was incorporated in Delaware in 2014 but does not have a main office, according to its filings. It has 1,350 employees across 65 countries.

Goldman Sachs, JPMorgan, and Bank of America Securities were the lead underwriters for the offering.

Read the original article on Business Insider

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