Among the new initial public offerings (IPOs) set to hit the market, GitLab is getting a lot of attention. Indeed, the company, which will soon trade under the ticker “GTLB,” is causing a lot of excitement among investors. Given how many IPOs we’ve seen of late, such investor interest in the GTLB stock IPO is intriguing.
GitLab is a coding platform founded in 2011. The company got its start as an open-source project but has since grown to a large community. Developers around the world use GitLab’s tools to reduce cycle time and solve coding issues. Given the technology and innovation-focused future we’re heading into, GitLab’s model is certainly an intriguing one for investors to consider.
This company operates fully remotely, something that has allowed for flexibility and growth through the pandemic. With more than 1,000 employees at this operation spread across the globe, GitLab has grown into an international powerhouse. And right now, it appears investor interest in this IPO is high.
Let’s take a look at some of the details of this upcoming IPO for investors interested in GitLab.
What to Know About the Upcoming GTLB Stock IPO
GitLab is expected to start trading this Thursday, Oct. 14. And already, investor enthusiasm for the IPO appears to be ballooning.
The company recently raised its IPO pricing range to nearly $10 billion. The company will sell shares between $66 and $69 apiece. The previous range provided by GitLab was between $55 and $60. This increase is a 15%-20% premium over what was previously announced. Accordingly, high investor demand for GTLB stock appears to already be materializing.
As a result of this offering, the company expects to bring in more than $700 million at the top end of its range. Considering the rather large IPO price increase, many investors expect it’s more likely than not GitLab won’t have trouble raising this money.
The nearly $10 billion valuation GitLab is seeking is notable for a number of reasons. Among these, the company recently raised money at a valuation of $6 billion earlier this year. Accordingly, GitLab appears to be feeling the love from investor interest in high-growth sectors such as this.
Indeed, considering GitLab is growing fast, with a revenue growth rate around 87%, and consistent gross margins of 88%, this is an intriguing stock to consider. That said, GTLB stock will be trading at quite the valuation multiple, should its $10 billion valuation be hit. The company brought in $152.2 million in revenue last year. At a valuation of $9.87 billion, that works out to an opening price-to-sales ratio of around 65.
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.
