Though today is Thursday, all eyes are on Monday this morning. Monday.com (NASDAQ:MNDY) that is, as the Tel Aviv-based workplace management software maker starts trading. This comes after pricing its U.S. initial public offering above a marketed range to raise $574 million.
The unicorn’s debut will be the biggest of any by an Israeli company, with a market value of about $6.8 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission. Including stock options, the company’s diluted value would be more than $7.8 billion.
Salesforce’s (NYSE:CRM) investment arm and Zoom Video Communications (NASDAQ:ZM) have each agreed to buy $75 million of MNDY stock in a private placement, the company said.
MNDY Stock Is Latest From ‘Startup Nation’
Monday.com is the latest tech powerhouse to come out of what’s been dubbed the “startup nation.” What should investors know about the firm?
- It started in 2010 as a tool developed within Wix.com (NASDAQ:WIX), only to be spun out by that firm.
- Its business proposition is essentially that custom software application development is too complicated and expensive for most non-software firms.
- Monday.com offers low-code or no-code development by using drag-and-drop and simple commands. In other words, a person does not need to be technical to build applications. Instead, this type of programming requires skill in setting up workflows and testing.
- The offering merges custom programming and off-the-shelf software. Customer get stronger return on investment, faster and with more certainty.
The IPO is a slight change of pace for Israel-based tech firms, considering the rush of deals underway to come public through special purpose acquisition companies. Ultimately, though, Monday.com joins a roster of what has become the third-largest headquarters of Nasdaq-listed firms. The U.S. and China take the first two spots.
The WIX stock IPO in November 2013 priced at $16.50 a share. Had you bought and held from the offering, your investment would be worth 1,200% more today.
On the date of publication, Robert Lakin had an restricted long position in MNDY stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, including previous stints with Bloomberg News and as a buyside equity research editor. His Substack newsletter, TLV Strategist, covers the Israel business scene.
