Palantir made direct listing as a trading listing with a $ 22 billion valuation


        Palantir Technologies<span class="company-name-type"> Inc.</span>


    PLTR <span>31.45%</span>


  The stock opened at $ 10 at the start of its trading career on the New York Stock Exchange, valuing the data firm at about $ 22 billion as it became the latest technology company to try its hand at direct listing. 

The stock recently traded at $ 9.98, higher than average prices of $ 7.31 and $ 9.17, where the stock changed hands in private trades in August and September, respectively. At its most recent trading level, it is 37% above its reference price of $ 7.25 per share, a guidepost set by the NYSE where no money changes hands.

Some direct listings that have been to date traded above their reference prices on the first day.

The Wall Street Journal reported last week that bankers in Palantir had told investors that the stock could start trading around $ 10.

The data-mining software company became the fourth notable company to use the direct listing model. Posture Inc.

Posture 32.14%

The first Wednesday also went public via a direct listing on Wednesday, with its stock initially trading higher. Only two other major companies – Spotify Technology SA

And Dull Technologies Inc.

-He completes direct listings anytime before Wednesday.

A direct listing skirts investment-banking underwriters, helping companies save millions of dollars in fees. It also means that companies do not raise money for themselves. Instead, employees and early investors are generally able to cash out the stock on the first day of trading because the shares are listed only on exchanges and advisors that match buyers and sellers.

Both Asan and Palantir listed their designated market makers and Morgan Stanley as financial advisors for their debut.

The IPOs are the latest sign of strong debit strength for the two listings in the market as companies are rushing to go public and investors are particularly hungry for technology listings. According to data provider Dealogic, the US listed IPO has raised more than $ 98 billion through Tuesday this year.

Bankers, lawyers and officials say that since the technical boom of 1999 and 2000, the amount raised has been exceeded every full year of listing. Bankers, lawyers and officials say they forecast the IPO market even in the years when the funds are raised.

“September will be the busiest month in the history of NYSE when it comes to new listings,” said John Tuttle, vice chairman and chief commercial officer who oversees global listings at the NYSE, which mentions the number of new listings this month We do. . “Even through highs and lows [of 2020], Capital markets are open to companies and investors. ”

Palantir has strong investor interest even when its founders have seen one of the most aggressive governance structures.

NYSE Chairman Stacey Cunningham celebrated the first day of Asan on Wednesday.


Photo:

Nicole perera / nyse / handout / shutterstock

Tuesday’s duel direct listing was a balancing act for the NYSE, which never dealt with opening two in a single day. Given the relatively unused nature of direct listings and their complexities, some people close to Palantir and Asan Prasad told the Journal that they were not thrilled that the two were happening on the same day.

Both Slack and Spotify’s direct listings went quite smoothly, with both companies closing 49% and 13% higher than their respective reference prices on their first trading day.

Since then, the business success of both companies has declined. Slack closed at $ 26.97 on Tuesday, down 30% from where it closed on the first day of business last year. Meanwhile, Spotify shares had lowered their first day closing price to $ 149.01 in 2018, until they shot higher this year. They closed at $ 242.45 on Tuesday, up 63% from the day before.

Like many other tech companies known publicly, Palantir never made a profit. For 2019, it recorded a loss of $ 579.6 million, which was also in line with 2018. The improvement appeared in the first half of 2020, with a $ 274 million loss in the same period in 2019, a loss of $ 164 million.

According to securities filings, the shares of Palantir’s three co-founders — billionaire investor Peter Thiel, chief executive officer Alex Karp and president Stephen Cohen — have been structured to become more powerful. Through a unique feature of the voting structure, Mr. Cohen, for example, can still effectively control the company by owning a small portion of the shares.

The structure of direct listings generally allows existing shareholders and employees to sell most or all of their shares immediately, rather than waiting for a mandatory lockup of 180 days in the most traditional IPO. Palantir has taken steps to limit the supply of stock in the market by only allowing existing holders to sell 20% of their shares by early next year. This reduction can serve to reduce the share price.

Meanwhile, asanas, which create workplace tools for productivity and communication, also made a strong start. Its shares recently traded at $ 27.01, which is 29% above the $ 21 reference price. The company is run by chief executive Dustin Moskowitz, one of the co-founders and the first chief technology officer of Facebook Inc.

Write Corrie Driebusch at [email protected] and Maureen Farrell at [email protected]

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