Today, investors have yet another IPO to digest. And right now, Allbirds (NASDAQ:BIRD) is really one of the main talking points in the market. Why? The BIRD stock IPO provided investors with impressive gains. Currently, BIRD stock is up more than 100% on a very impressive opening day.
Investors may wonder how companies can get the valuation so wrong initially. Indeed, a serious amount of due diligence goes into pricing these offerings. That said, it appears the timing of this IPO was spot on.
Retail-related stocks have been booming of late. A number of high-profile retailers have recently reported either all-time highs, or 52-week highs today. Accordingly, any key brands consumers connect with are being viewed as places investors want to be. That is, given the surging demand we’re seeing play out and the economic recovery materializing.
Allbirds is certainly one of the most interesting companies to go public of late. The company’s eco-friendly wool slip-on shoes and sneakers have been a hit with consumers. Accordingly, investors appear to be bullish on this company’s outlook heading into the busy holiday shopping season.
Let’s dive into a few things investors may want to know about Allbird’s recent IPO.
What to Know About the BIRD Stock IPO
- Allbirds initially priced its shares between $12 and $14.
- However, yesterday the company announced it had raised its IPO price to $15 per share.
- At nearly $30 per share at the time of writing, BIRD stock has certainly had quite the opening day.
- The company sold more than 20 million shares at the $15 level, raising $303 million in aggregate proceeds.
- Investors appear to like the tech-related exposure this retail stock has.
- The company’s valuation at $15 per share was roughly 9-times sales based on the previous quarter.
- This valuation has gotten a big boost today, with investors seemingly thinking the company undervalued itself.
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.