Figs, the first IPO made available to Robinhood users, soars 36% in its public debut

Models wear clothes from healthcare apparel maker Figs.
Models wear clothes from healthcare apparel maker Figs.

  • Figs stock surged 36% in its trading debut Thursday, which also marked the first IPO accessible on the Robinhood trading platform.
  • Robinhood introduced its IPO Access service last week, which it says gives retail investors a chance to participate in IPOs.
  • Figs shares priced at $22 each, higher than the anticipated range of $16-$19.
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Figs, a company that makes fashionable and comfortable medical care apparel, soared Thursday in its public debut, which also marked the debut of the first IPO accessible to users of the Robinhood trading platform.

Shares of Figs jumped 36% to close at $30.02 after they priced at $22 each. With the first session in the books, Figs’ valuation was about $6 billion.

“The Figs IPO is good news for Robinhood users, as Figs is the best looking IPO we’ve seen so far in 2021,” said David Trainer, CEO of investment firm New Constructs, in a note late Wednesday before trading began Thursday.

Robinhood last week introduced IPO Access, a service that allows users to buy shares of companies at IPO prices and before they begin trading on open markets. Robinhood said the service further democratizes trading as IPO shares usually go to institutions or wealthier investors.

The IPO price for Figs was higher than the expected range of $16 to $19. Trainer in his note said Robinhood users would be randomly selected for the opportunity to buy Figs at the IPO price before they went live on the New York Stock Exchange.

Meanwhile, investors were waiting for news about Robinhood’s own move into the public market. The company has been planning to reveal filings for its own IPO, according to Bloomberg, after confidentially filing for one in March.

Figs was profitable in 2020 and 2019, and carries a plausible path to justify expectations baked into the stock price if it can maintain current margins and above-average revenue growth rates, said Trainer.

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DoorDash prices IPO at $102 per share, will raise $3.4 billion

doordash delivery driver
  • DoorDash priced its shares at $102 apiece on Tuesday ahead of its IPO, CNBC’s Leslie Picker reported. That comes in well above the expected range.
  • The offering is expected to raise $3.4 billion, and it gives the food-delivery company a valuation of $32.4┬ábillion.
  • DoorDash lifted its pricing range on Friday to $90 to $95, from $75 to $85. Its new pricing sets the company up to be one of the year’s biggest debuts.
  • DoorDash is set to trade on the New York Stock Exchange under the ticker “DASH.”
  • Visit the Business Insider homepage for more stories.

DoorDash priced its shares at $102 each on Tuesday ahead of its highly anticipated initial public offering, CNBC’s Leslie Picker reported. The final pricing comes in well above the expected range.

That pricing will allow the company to raise $3.4 billion when it begins trading on Wednesday, according to a regulatory filing. It also gives the firm a $34.2 billion valuation, based on common stock outstanding, and $38.7 billion on a fully-diluted basis. It will mark one of the year’s largest market debuts.

The pricing brings DoorDash well above the roughly $15 billion private valuation it achieved earlier in 2020, which was already a major increase from the $1.4 billion it was worth in 2018.

DoorDash is poised to become the highest-valued food-delivery company when it debuts on the New York Stock Exchange. The company is set to trade under the ticker “DASH.”

Read more: Goldman Sachs says buy these 25 stocks it expects to pay big dividends that will keep growing over the next decade

DoorDash lifted its IPO price range on Friday to $90 to $95, from $75 and $85 per share. Its latest target sets it up to be among the year’s five largest offerings.

IPOs from DoorDash, Airbnb, Wish-parent ContextLogic, and others are set to drive the busiest December on record for public offerings. US listings have already raised a record $156 billion in 2020, according to Bloomberg data, partially fueled by the year’s blank-check frenzy.

Goldman Sachs and JPMorgan will serve as the offering’s lead underwriters.

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