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Looks like investors were very hungry for this one and the high jump on the first date indicates that they are viewing Pagerduty in the same market segment as M
by raiyu 8y ago
Looks like investors were very hungry for this one and the high jump on the first date indicates that they are viewing Pagerduty in the same market segment as MongoDB and Twilio. Same set of customers, expanding market as each of those customers increase their server foot print.
Also with the 50% pop looks like investors were ready to give them future growth so the company definitely left money on the table with their IPO pricing.
But none the less amazing IPO. Hopefully stock stays in the range on Friday.
- shhehebehdh 8y agoI don’t really get what makes this an amazing IPO. Afaict they left 33% of the money on the table. How is that a good thing for the company or the shareholders?
- dalbasal 8y agoOne way or another, that shouldn't be that big a deal. The company doesn't necessarily raise that much on IPO day. The importance of raising that sum at a 20% higher/lower valuation probably isn't the biggest thing at stake. The IPO isn't primarily fund raising, especially for this current crop of more mature unicorns. It's primarily liquidity generating.
- sb8244 8y agoIt would be good for people who bought in (higher margin), good for people selling in 6 months (employees), and bad for the company (money on the table).
- breerly 8y agoThis sounds right.
- dcaisen 8y agoDon't forget about the underwriters (investment bankers) who will be paid a hefty sum by Pagerduty (despite underpricing the IPO) and who also just got a ton of goodwill from their top trading clients who got those IPO allocations
- analyst74 8y agoI don't see how this is better for employees, assuming there is a stable price X, whether you price IPO at X * 0.8 or X * 1.2, by the time 6 months is passed and employees are able to sell, it probably have already converged to X.
- deathhand 8y agoI think its most likely due to high usage of the service & income of those who use the service. Devops can make bank, and devops need this SAAS.