Aofex

GTLB Stock Up Over 34% after GitLab Prices IPO above Expected Range

UTC by Steve Muchoki · 2 min read
GTLB Stock Up Over 34% after GitLab Prices IPO above Expected Range
Photo: GitLab / Twitter

Following a successful initial public offering, GitLab CEO is the largest shareholder with an approximately 19% stake.

GitLab Inc (NASDAQ: GTLB) stock closed the first-day trading at $103.89, up 34.92% from the opening price. The gains continued during the extended trading period with approximately 1.53% higher than the closing price as of October 14, 2021, 7:59 p.m EDT. Notably, the web-based DevOps lifecycle tool provider priced its stock at $77 on Wednesday. Thereby giving the company a market valuation of approximately $11 billion.

Previously, the company had said that it would likely sell its shares at a price between $66 and $69. However, due to high demand from investors, the company re-evaluated the entry IPO price to match the increased demand.

With the price having jumped to trade above $103, the company has seen its market capitalization well above $15 billion.

According to GitLab CEO Sid Sijbrandij, the company raised approximately $650 million, with some investors purchasing additional shares for an extra $150 million from an entity affiliated with the company.

Following a successful initial public offering, Sijbrandij is the largest shareholder with an approximately 19% stake. He is closely followed by Khosla Ventures that owns approximately 14%. ICONIQ, August Capital, and GV (formerly Google Ventures) own 12%, 11%, and 7% stake respectively according to the company’s prospectus.

GitLab takes pride in over 30 million registered users and more than 2,600 contributors in its open-source community. Hereby, the company offers notable competition to Microsoft-backed GitHub that offers similar services.

According to market analytics provided by MarketWatch, the company has approximately 11.55 million outstanding shares. In the past 24 hours, GitLab shares recorded an average volume of 4.28 million.

GitLab Stock and the Market Outlook

The company has ventured into a field that promises to revolutionize most businesses in the global market. With public investors backing the company, it is now well-positioned to take up competitors stronger than before.

“In a world where software defines the speed of innovation, every company must become a software company or they’ll be disrupted by a software company. We believe that GitLab, the DevOps Platform, helps companies to deliver software faster and more efficiently while strengthening security and compliance. And it all happens inside our single platform where engineering, security, and operations teams can collaborate,” the company noted in a blog post.

Notably, the company makes money from selling premium products to monthly users for as low as $19 and high as $99 a month. The company noted that it has around 383 customers who spend at least $100k a year on its premium products.

Business News, IPO News, Market News, News, Stocks
Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

Related Articles