Eyeglass-type Warby Parker was worth more than $ 6bn after a direct recording in New York on Wednesday, more than double its value at a recent private conference.
The direct list allows investors to start selling shares on the exchange without the company raising the money. Warby Parker is the first real estate business and the first public benefit company – meaning it has a law banning the interests of shareholders and participants – following such lists in the US.
The company’s shares opened for $ 54.05 on the New York Stock Exchange Wednesday afternoon, compared to the $ 24.53 price paid for a fundraiser last August and for a generous donation in April.
A strong start lit up the resume business hunger of fast-growing companies despite the recent jitters in the stock market. More than 300 companies registered in the US this year, excluding private purchasing companies – more than double the first three quarters of 2020.
Neil Blumenthal, Warby Parker’s chief executive, said being in the group would provide an opportunity for people to help attract more customers and employees, but added: “melting” the traditional IPO.
He also referred to the direct list as “transparent, inclusive and equitable mechanisms that enable us to engage with the entire financial sector… Without unnecessary mentors”.
The 11-year-old New York-based company started selling glasses directly to online consumers, but now has a network of more than 100 retail stores and is planning to add more. Officials are also expected to set up new businesses in combination with eye tests.
Warby Parker, name After two people in the Jack Kerouac newspaper, he also reported a loss of $ 56m in 2020 on a profit of $ 394m.
The direct list has slowly filled up as an alternative to traditional IPOs since the Spotify music campaign was the first to take the lead in the US in 2018. the number 2021 to six, as many as recorded three years ago.
Going public through a direct list is cheaper for companies than traditional IPOs, and sponsors such as Bill Gurley of investment firm Benchmark say they offer a better way to choose a starting starting price.
However, investors and other professionals are convinced that they are suitable for the few companies that have earned the most money and have a good track record of pleasing investors.
As a result, they are controlled by investment companies that are backed by capital gains. Warby Parker had already raised more than $ 500m from investors including Tiger Global, T Rowe Price and Main Assistance.
“There will be a direct registration center [in future], but it does not take over the IPO market, ”said Reena Aggarwal, a Georgetown University professor and sociologist.
He also noted the lack of leads-to-bank marketing on the list of factors that could put them at risk in the market.
“Once there is a deal – and at some point what happens – then you have to work harder to sell [listing] more than you want today, ”said Aggarwal. “Today, there is a lot of money to drive sales.”