Today marks the start of trading for yet another newly minted company. Initial public offering (IPO) season remains in full swing. And it has been good to investors in new companies such as EngageSmart (NYSE:ESMT) and ESMT stock today.
Indeed, the impressive rise of 35% in ESMT stock at the time of writing is certainly impressive. Any opening debut that blows away expectations like this makes for an intriguing discussion. Most IPOs tend to be priced attractively to entice investors to take on the full offering. However, whenever a stock opens this much higher, indications are that the company’s equity was fundamentally undervalued to begin with.
For early investors in EngageSmart, that’s a great thing.
Let’s dive into why investors are getting all giddy over ESMT stock.
What Investors Want to Know About EngageSmart and ESMT Stock
- EngageSmart is a company focused on providing integrated payments solutions and customer-engagement software to its clientele.
- EngageSmart priced its IPO today at the $26 level.
- This was higher than the previous range that the company provided of $23 to $25 per share.
- Accordingly, the company confirmed it was able to sell 14.55 million shares at the $26 level.
- This translates to total aggregate proceeds of nearly $380 million.
- That said, private equity firm General Atlantic is selling 13 million shares of the offering.
- Shareholders sold 1.55 million shares, amounting to total proceeds of roughly $40 million.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.