Categories IPO, Others, Technology

IPO News: Here’s all you need to know about GitLab’s upcoming stock market debut

GitLab looks to raise up to $505 million by offering around 8.4 million shares, which would value the company at nearly $9 billion

Technology companies continue to make a beeline for listing on public markets, to take advantage of the bull run the stock market is currently witnessing. Coding platform GitLab Inc. is among the latest IPO aspirants from the tech world. The company recently set the terms for its long-awaited stock market debut, which was delayed for more than a year.

8.4 Mln Shares

The San Francisco-based developer-operations firm looks to raise up to $505 million by offering around 8.4 million shares, which would value the company at about $9 billion. The offer price would be in the range of $55 to $60 per share. On receiving the SEC nod, the shares will start trading on Nasdaq under the ticker symbol GTLB. The company was valued at $6 billion after the last fundraising round.


Read management/analysts’ comments on quarterly reports


The group of book-runners in the offering will be led by JP Morgan and Bank of America Securities. The net proceeds from the offering will be used mainly for general corporate purposes and working capital. A part of the amount will also be used for suitable acquisitions and investment in technologies and solutions.

DevOps Lifecycle Tool

The Alphabet-backed company was founded in 2014 by Sytse Sijbrandij, who has served as the chief executive officer since then. It offers web-based tools that allow software developers to collaborate, thereby simplifying the process. Its clientele includes big names like The Goldman Sachs Group (NYSE: GIS) and Nvidia Corporation (NASDAQ: NVDA). GitLab is touted as the world’s largest all-remote company without a headquarters.

ipo news

In fiscal 2020, GitLab’s total revenues surged 87% to $152.2 million. However, net loss widened to $192.2 million or $3.82 per share from $130.4 million or $2.76 per share in the prior year, reflecting a 74% jump in operating expenses. The number of base customers totaled 3,632.

High Retention

At the end of the year, its dollar-based net retention rate stood at 148%, which marked a sharp year-over-year increase, underscoring the sustainability of the subscription model and a high level of customer success.


Cingulate is making its market debut this week, here’s what to know


On the flip side, GitLab is yet to generate profit. Also, the involvement of third-party open-source technologies and huge volumes of data puts the company at a high risk of security breaches. Though the company faces relatively less competition it needs to continue innovating in order to keep pace with the likes of GitHub, which joined the Microsoft (NASDAQ: MSFT) fold a few years ago in a $7.5 billion deal.

_________________________________________________________________________________________________________________

Stocks you may like:

Apple (AAPL) Stock

Microsoft (MSFT) Stock

Alphabet (GOOGL) Stock

International Business Machines Corp. (IBM) Stock

_________________________________________________________________________________________________________________

Most Popular

What to look for when CVS Health (CVS) reports Q3 earnings

Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain

eBay (EBAY): A few factors that helped drive growth in Q3 2024

Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top