- Digital coupons business jumps 17% post New York IPO
- Joins Reddit and Astera Labs as major new listings this year
- At $103.25 day one close, Ibotta market cap over $3 billion
There’s been plenty of talk about an IPO (initial public offering) market revival this year, and Ibotta’s (IBTA:NYSE) blistering New York debut will only bolster that narrative.
On its first day as a public company, shares in the venture-backed digital couponing app jumped 17% from its $88 IPO price, which was already at the top of the range bankers expected. That nudges the company’s market cap above $3 billion.
The warm reception, at least initially, defies some recent warnings by commentators that today’s IPOs need scale to get a listing off the ground. At The Information’s Private Capital Conference last week, Coatue Management’s Phillip Laffont said ‘we think that you can’t go public without $1 billion in revenue, $10 billion in market cap’.
Interestingly, not one of the three US tech IPOs this year – Reddit (NYSE), Astera Labs (ALAB:NASDAQ) and now Ibotta - had met that revenue threshold, and so far, all are trading comfortably above their IPO prices, albeit very early days to make meaningful judgements.
Ibotta’s rally also suggested investors were satisfied with answers to the biggest questions regarding its business model, such as its potential over-reliance on Walmart (WMT:NYSE) as a client.
Time will tell but these early IPO successes should leave the door open for more listings, potentially giving equity market investors new options. Next up is Rubrik, which started its investor road show this week.
