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.
  • See more stories on Insider’s business page.

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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Coinbase pulled in $57 million from retail investors during its trading debut, the 5th-most-popular offering since 2017

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Coinbase is set to directly list on the Nasdaq on Wednesday.

  • Retail investors poured $57 million into Coinbase shares during its first day of trading Wednesday.
  • Coinbase’s debut is the fifth most popular for retail investors in four years, says VandaTrack.
  • Coinbase shares were up during their second session of trade.
  • See more stories on Insider’s business page.

Coinbase‘s trading debut drew in more than $57 million from retail investors, putting the cryptocurrency exchange among the most popular stocks to go public in the last four years, according to figures released Thursday.

Retail investors poured in $57.35 million into Coinbase on Wednesday when its direct listing on Nasdaq went live publicly, according to VandaTrack, which monitors retail investing activity in 9,000 individual stocks and ETFs in the US.

Coinbase accounted for nearly 7% of net purchases made by retail investors on Wednesday, with total purchases of US stocks and ETFs coming in at US$822 million.

Coinbase’s public debut was the fifth largest in terms of retail buying for newly listed shares since 2017, VandaTrack estimated. The largest was for Snap, with the social media company taking in $143 million in its first day of trading in March 2017. More recently, Rocket Companies, which runs personal finance and consumer service brands including Rocket Mortgage, logged $58 million from retail investors when it went public in August.

The collective profile of retail investors has been raised during the coronavirus pandemic in part as people have used stimulus money and time spent indoors during lockdowns working to make money from the stock market. A recent study by Charles Schwab released showed that 15% of all US stock markets investors began investing in 2020.

In the highly anticipated debut, Coinbase’s market value swelled to an intraday high of $112 billion, surpassing those of some of the largest companies in the US.

Coinbase shares during Thursday’s session rose, trading above $334 each. They finished Wednesday’s session at $328.28, below their open opening price of $381.

Read more: BTIG identifies 14 beaten-down stocks poised to dominate the market this earnings season and extend their track record of crushing expectations

Coinbase day one retail investing
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DoorDash makes trading debut 78% above IPO price

DoorDash delivery driver courier brooklyn bike
  • DoorDash commenced public trading on Wednesday, opening at $182, which was 78% above its initial public offering price.
  • The food-delivery company raised roughly $3.4 billion with its initial public offering after pricing shares at $102 each on Tuesday.
  • The IPO kicks off a slew of debuts slated for December, including offerings from Airbnb and Wish-parent ContextLogic.
  • DoorDash trades on the New York Stock Exchange under the ticker “DASH.”
  • Watch DoorDash trade live here.

DoorDash commenced public trading on Wednesday, opening at $182, which was 78% above its initial public offering price. The stock is listed on the New York Stock Exchange.

The food-delivery company raised roughly $3.4 billion in its initial public offering, selling shares at $102 each. The final pricing exceeded its previously expected range of $90 to $95 per share, and gave DoorDash a valuation of roughly $34.2 billion. That sum handily surpasses the $15 billion valuation it achieved in the private market earlier this year.

DoorDash’s IPO marks one of the year’s biggest offerings and caps a historic year for public debuts. US listings already raised a record $156 billion in 2020, according to Bloomberg data. Airbnb and Wish-parent ContextLogic are still poised to enter the market this month, with the former set to begin trading on Thursday.

Read more: We spoke with Wall Street’s 9 best-performing fund managers of 2020 to learn how they crushed the chaotic market – and compile the biggest bets they’re making for 2021

Overwhelming investor demand placed shares on track to open as high as $195 before trading began. Its ultimate opening level of $182 is more than double the $75 to $85 range DoorDash expected to price shares as recently as Thursday.

DoorDash’s debut establishes it as the highest-valued food-delivery company. The firm trades under the ticker “DASH.” 

While the coronavirus slashed sales across the US economy, stay-at-home orders led DoorDash to thrive through the pandemic. Third-quarter revenue leaped 268% from the year-ago period as a larger portion of Americans turned to food delivery services. 

Read more: Ron Baron earned a $4.2 billion windfall just from investing in Tesla. The legendary investor told us why he still expects a 30-fold return from Elon Musk – and shared the biggest lessons and mistakes of his career

The distribution of a coronavirus vaccine might cut down on deliveries, but soaring COVID-19 cases and reinstated lockdown measures stand to keep the company’s hot streak alive into 2021.

DoorDash climbed as much as 92%, to $195.50, on Wednesday. Goldman Sachs and JPMorgan served as the IPO’s lead underwriters.

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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 billion.
  • 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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