- Asana jumped as much as 10% in its first day of trading on Wednesday.
- The stock opened at $27 per share, 29% above its reference price of $21. The ensuing climb marked a 10% increase from the opening price.
- With 155 million shares outstanding, Asana sported a valuation of $4.6 billion at its peak after opening at $4.2 billion.
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Asana jumped as much as 10% in its first day of trading on Wednesday, hitting a high of $29.79.
Asana is a work management software company based out of San Francisco. The firm went public via a direct listing rather than the traditional IPO route.
With a reference price of $21 per share, Asana opened at $27 per share in the first minute of trade, giving it a valuation of $4.2 billion. At its peak on Wednesday, Asana sported a valuation of $4.6 billion, based on about 155 million shares outstanding.
Asana was founded in 2008 and markets a web and mobile application designed to help teams organize, track, and manage their work. The firm counts other software based companies like SmartSheet and Atlassian as its competitors.
According to its S-1 filing, Asana reported fiscal year 2020 revenue of $142.6 million, representing year-over-year growth of 86%. Net loss in fiscal year 2020 was $118.6 million, more than double from the prior year’s loss of $50.9 million.
As of January 31, the company had over 1.2 million paid users.
A direct listing differs from a traditional IPO in that a direct listing does not raise any money for the company going public. Instead, a direct listing allows employees and shareholders to cash out and sell shares.
Asana isn’t the only company going public via a direct listing today. Palantir is expected to start trading on Wednesday afternoon, as it awaits its direct listing on the New York Stock Exchange.
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