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June 10 (Reuters) - Shares of monday.com Ltd jumped nearly 12% in their Nasdaq debut on Thursday, giving the Israeli work management company a market capitalization of about $7.6 billion.
The company’s shares opened at $173.15, compared with their initial public offering (IPO) price of $155 per share.
Tel Aviv-based monday.com sold 3.7 million shares in its IPO, raising about $574 million.
Launched in 2014, the company operates a cloud-based platform known as Work OS that allows organizations to build software, applications and work management tools based on their needs.
“There is a big shift in the last ten years in Israel. We’re breaking another glass ceiling I think... in terms of the maturity of the ecosystem,” co-Chief Executive Officer Roy Mann told Reuters in an interview.
monday.com is present in more than 190 countries and has over 125,000 customers, including companies such as Adobe Inc , Peloton Interactive Inc, Discovery Inc and Universal Music Group.
“monday.com’s strong IPO pricing illustrates appetite for online workplace management software tools remains robust as a consequence of pandemic-induced growth,” said Nalin Patel, EMEA Private Capital Analyst at PitchBook.
The company sees a massive opportunity in using its internal and external resources to go after the market and does not see any reason to pursue any acquisitions post going public.
“Our plan is to grow organically for a long time,” Mann said.
monday.com’s revenue surged 85% to $59 million in the three months ended March 31, from a year earlier, the company’s filing showed. Net loss, however, widened to $39 million from $19.9 million.
Goldman Sachs, J.P. Morgan, Allen & Co and Jefferies were among the underwriters of the offering. (Reporting by Sohini Podder in Bengaluru; Editing by Shinjini Ganguli and Shailesh Kuber)