Coding platform GitLab leaps 23% in trading debut after pricing IPO at $77 a share

GitLab cofounders Dmitriy Zaporozhets and Sid Sijbrandij
cofounders Dmitriy Zaporozhets and Sid Sijbrandij GitLab
  • Shares of GitLab leaped 23% in their Nasdaq trading debut, a market cap of $US13.48 ($AU18) billion.
  • GitLab initially priced its IPO at $US77 ($AU104) a share, putting its valuation at roughly $US11 ($AU15) billion.
  • The company on Thursday opened at $US94.25 ($AU128), exceeding the target range of $US66 ($AU89) to $US69 ($AU93) per share it set late Wednesday.
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Shares of GitLab leaped 23% in their trading debut on Thursday, giving the coding platform a market capitalization of $US13.48 ($AU18) billion.

GitLab priced its initial public offering at $US77 ($AU104) a share, putting its valuation at roughly $US11 ($AU15) billion based on the outstanding shares listed in its regulatory filing. The company on Thursday, trading under the ticker GTLB, opened at $US94.25 ($AU128).

The company’s largest shareholder is its co-founder and CEO Sid Sijbrandij, whose stake stands at 19%, according to the prospectus. He is followed by Khosla Ventures, which owns 14%, and then by ICONIQ, which owns 12%.

There were some doubters among Wall Street analysts following the strong debut, however.

“We believe GitLab is worth as little as $US770 ($AU1,043) million or $US5 ($AU7)/share, which is 91% below the midpoint of the expected price range,” David Trainer, CEO at New Constructs, said in a note. “What is most worrisome about GitLab is that it competes with some of the largest technology companies in the world.”

The all-remote company – founded in 2011 by Sijbrandij and Dmitriy Zaporozhets – is best known for offering organizations a single platform to create a streamlined software workflow. Its product, called the DevOps platform, competes with Microsoft‘s Github.

GitLab was incorporated in Delaware in 2014 but does not have a main office, according to its filings. It has 1,350 employees across 65 countries.

Goldman Sachs, JPMorgan, and Bank of America Securities were the lead underwriters for the offering.