Bill.com’s stock surged on its first day of trading, opening 69 percent higher than its IPO price and closing 61 percent higher.
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Bill.com priced its shares at $22 apiece on Wednesday, higher than its pricing range of $19 to $21. The company initially priced its shares between $16 and $18 before raising the range.
On Thursday morning, the company’s stock opened at $37.25 and ended its first day of trading at $35.50, 61 percent higher than its IPO price of $22. The company raised about $216 million by selling 9.8 million shares before trading began Thursday.
On one hand, the jump in the company’s stock price shows that investors like Bill.com and want to buy it. But on the other hand, Bill.com definitely left some money on the table–it could’ve priced its shares higher than $22 and made more money upfront.
The payment software company, which is based in Palo Alto, has pretty good financials. Bill.com reported $35.2 million in total revenue for the third quarter of 2019, showing 57 percent year-over-year growth. It had $5.7 million in net losses during the same period, and its gross margins were about 74 percent, which is solid for a SaaS company.
Illustration Credit: Li-Anne Dias