JAMF acquired a 96% stake in its debut on Wednesday after the company, which helps businesses deploy Apple products, priced its IPO above its expected threshold.
JAMF priced 18 million shares at $ 26 on Tuesday, after previously raising the range from $ 21 to $ 23. The stock climbed to $ 51 on Nasdaq, giving the company a market cap of about $ 5.9 billion. It was trading around $ 41 in mid-day.
Amid the epidemic of corer virus is the latest tech IPO to show investors that it continues, and companies are still dropping huge amounts of cash when they go public. Tech IPOs have long been criticized for a process that gives bankers under-stock to new investors, who often enjoy an instant pop, while the issuing company raises less money from it. Insurance tech company Lemonade jumped 139% in its first day trading earlier this month, a week after Chinese cloud software provider Agora rose 150%.
Founded in 2002, JAMF says its mission is to “help organizations succeed with Apple”, the most valuable US company with a market cap, approaching $ 1.7 trillion.
JAMF helps deploy Mac computers, iPhones and iPads securely, connecting companies together, and giving IT teams the tools to manage them. JAMF stated in its prospectus that its 40,000 customers are deployed on more than 17 million Apple devices.
Revenue in the first quarter climbed 37% to $ 60.4 million from a year earlier, and JAMF’s gross margin increased from 70% to 75%, as more subscribers offered its membership. Its net loss decreased slightly from $ 9 million to $ 8.3 million.
JAMF said that, with more people working remotely during the Kovid-19 outbreak, the company is doing less in-person training and shifting more sessions online, pulling services revenue . However, more employers are making changes to the membership service, according to the prospectus.
“We believe that our internal cloud-first technology platforms have allowed for seamless transition to remote work environments without any physical impact to our business, highlighting the flexibility of our business model.” Nevertheless, JAMF repeatedly cites uncertainty around the length and magnitude of the broader crisis as a significant risk.
Another risk comes from Apple. In Laat month, the iPhone manufacturer announced the acquisition of four-year-old company Flamesmith, whose software makes it easy to remotely configure, wipe, and deploy devices. JAMF said it currently sees Flamesmith as focusing on small and medium-sized businesses, but could use technology “to compete more directly with the scale and breadth of product offerings,” The filing warns.
JAMF is primarily controlled by private equity firm Vista Equity Partners, which acquired a majority stake in the company in 2017 for $ 733.8 million. The firm’s stake now stands at more than $ 4.5 billion, based on JAMF’s trading on Wednesday.
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