The Israeli workplace management software company closed its first day of trading with its shares bumping up to $178.
In the latest tech IPO, workplace management software firm Monday.com closed out its first day of trading with a bump.
The Israeli company, which was founded in 2012 and develops a project management tool called Work OS, floated on the Nasdaq at $155 a share on Thursday (10 June) and ended the day at $178. The listing raised $574m in fresh capital and valued the company at $6.8bn.
Zoom and Salesforce were watching closely and each invested $75m in the company in a private placement at the IPO price, marking a quick profit on paper for the tech firms. Lock-up restrictions mean that those companies can’t sell their stock for 180 days.
The business was founded by co-CEOs Eran Zinman and Roy Mann. Zinman told Bloomberg that he and Mann have no intention of cashing out on their own shares.
“Both me and my partner, we don’t plan to sell,” Zinman said. “We want to build a big company. That’s our ambition.”
Monday.com had raised more than $230m in funding from venture capital investors including Insight Partners and Stripes Group.
In filings published in advance of the public listing, Monday.com revealed that while revenues had grown recently, it was still loss making.
It booked revenue of $59m for the three months ended March 2021 – nearly double that of the same period in 2020 – but reported net loss of $39m, up from the year prior.
Expanding into more markets is on the agenda for the company. According to filings, more than half of its revenues are generated outside of the US.