it is no longer The hot summer is anything but, sadly, as the seasons change. But maybe we’re in for a hot IPO autumn.
Rent the Runway, NerdWallet and other companies are setting us up for a busy second half of October. But GitLab’s going public this week will mark the beginning of a company worth many of those other venture-backed former startups. And the developer tooling company recently turned to valuation heat.
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This week, GitLab Updated your IPO filing To include a higher expected price interval. Unicorn now anticipates it will sell shares in its IPO for between $66 and $69, up from one $55 to $60 . back limit of.
That’s quite the jump!
Our task this morning is straightforward: We’re calculating GitLab’s new Simple IPO valuation range and figuring out what the company can do on a fully diluted basis. We’ll then work out some revenue multipliers, hoping that our earlier estimates of the company’s value are correct, and what the potential value of the IPO says about the software market more broadly.
This is one of those posts which is only good news for startups and their supporters. For the other side of this particular coin, go here. ready? in violation.
What is GitLab worth?
In its first IPO price range, with 143,534,821 shares outstanding since its offering (including options from its underwriters), GitLab was valued at $7.9 billion to $8.6 billion. IPO watcher Renaissance Capital pointed out that at the “midpoint” [its first] The proposed range, GitLab would command a fully diluted market value of $9.4 billion.
Or more accurately, at $57.5 per share, GitLab would be worth $9.4 billion. At $60 a share, that number would increase to $9.8 billion.
Now at $66 to $69 per share, the company’s expected 143,534,821 post-IPO share count works out to a simple valuation range of $9.5 billion to $9.9 billion. Translating the company’s full-diluted valuation to $57.5 per share at $69 per share, we can estimate that GitLab could be worth $11.3 billion when all the shares are exercised.
I could show a little less work there, but I want you to follow me as we tinker with the numbers.
Is it expensive?
let’s find out!