The Atlassian float just beat its listing price by 30%, with its $US21 shares trading at $US27.37, making everyone associated with the Sydney collaboration software company a lot richer.
The two big winners are the founders, 35-year-olds Mike Cannon-Brookes and Scott Farquhar, who have each kept a 37.7% holding in their company, representing 69,732,090 shares a piece.
This means they are now worth a bit more than $US1.9 billion each. And those US dollars back home in Australia are worth about $A2.61 billion, or about $A610 million more than when the shares were valued at $US21 each.
That puts them ahead on Australia’s rich list, as compiled by BRW, of other billionaires including retailer Gerry Harvey, media baron Kerry Stokes and rag trade veteran Solomon Lew.
A core group of executives have also done very well from the listing.
These include the president and the former head of sales, Jay Simons, who has 3,722,271 shares — now worth about $US101.87 million ($A140 million), an extra $US23.7 million $A32.5 million) from the IPO price.
— Mike Cannon-Brookes (@mcannonbrookes) December 10, 2015
Atlassian, unlike many tech startups, hasn’t taken on funding from venture capitalists or private equity groups. Its growth has been organic, funded from cash flow.
When it did take outside funding, from Accel and T. Rowe Price, it was so employees could sell some of their shares and get some cash.
— Scott Farquhar (@scottfarkas) December 10, 2015
Market analysts say the 30% jump in the share price is a strong indicator of investor interest. And it means Atlassian could turn out to be the most successful tech IPO of the year in the US.
Unlike a lot of the tech startups which lose money and are listed or sold on the promise of good things in the future, Atlassian has been profitable for the last 10 years and is still growing.