World News – CA – Asana and Palantir Begin Trading Well Above Benchmark Prices in Double Direct Listings


Asana Inc was the first direct out-of-the-gate listing on Wednesday, but Palantir Technologies Inc received a larger increase to its benchmark price amid the double debut for the two Facebook Inc-related software companies

Asana started trading at 12:35 p.m. EST priced at around $ 27, valued at around $ 4 1 billion NYSE has set a benchmark price of $ 21 for the stock Under 15 minutes after its first trade, Asana shares rose about 40% and were up 35% to $ 28.44, after an intraday high of $ 2979

At 1:40 pm Eastern shares, Palantir started trading, slipping out the door with 40% above benchmark price Shares were last up 52% at $ 11.00, after an intraday high of $ 11.42 The New York Stock Exchange had set a benchmark price of $ 7.25 a share based on private market transactions for the share, and the Wall Street Journal reported last week that the company expected the shares to open around $ 10

Reference prices for direct listings are based on private market trading prices before companies file for public listing with the Securities and Exchange Commission Direct listings differ from IPOs because there is no capital raised, which places a dollar amount on the shares in an IPO Direct listings should trade significantly above the benchmark price

is a collaboration software company co-founded by Facebook co-founder Dustin Moskovitz, who serves as Managing Director, while Palantir
is a data software company co-founded by Facebook
investor and board member Peter Thiel The two companies chose to list their shares directly instead of selling new shares as part of an initial public offering, a route previously taken by Spotify Technology SA
and Slack Technologies Inc
who were also mature startups that repeatedly sold stocks in the private markets and sought to offer investors public trading options

In an interview with MarketWatch on Wednesday, Shyam Sankar, COO of Palantir, said the company made the decision to go public around mid-2019, keeping an eye on the back half of 2021 After the outbreak of the pandemic, he said the company accelerated its schedule on Wall Street

« COVID has really ramped up activity and it has become clear that now is the time for us to think about » an earlier IPO, Sankar said

Sankar called the direct listing « capital » and « exciting, » and said the company made the decision to list instead of going public because it did not need capital, but wanted to offer investors a chance to profit from their participation

“We have had incredibly patient investors – especially our biggest, the employees – and this immediately gives them better market access,” he said

Palantir launched its first software platform in 2008 and has long been known as a secret software start-up focused on military and law enforcement uses, courting controversy for its work with the Immigration and Customs Division from UThe government s company has since launched a second offering that has attracted private sector clients and has become much louder about its business, including a Silicon Valley public divorce in which co-founder and chief executive Alexander Karp detailed a departure from California defended his company’s work for the government

Moskovitz also launched Asana in 2008, developing software tools in competition with Atlassian CorpS
Trello The San Francisco-based company reported $ 143 million in revenue in its fiscal 2020, up 86% year-over-year.The company also reported that losses had increased, reaching $ 118 6 million in fiscal 2020 from $ 50 9 million in fiscal 2019

The 700-person San Francisco-based company reported $ 52 million in revenue for the quarter ended July 31, up 57% year-over-year Its loss net during the period rose to $ 41 1 million, compared to $ 15 6 million in losses for the same period last year The company has not yet made a profit

Palantir is also far from profitable, revealing in its SEC filings that its revenues rose to $ 742.6 million in 2019 from $ 595 million in 2018, while losses remained even at over ‘half a billion dollars a year – $ 579 6 million in 2019 and $ 580 million in 2018 In the first six months of this year, Palantir recorded a loss of $ 164 7 million on revenue of $ 481 million, after to have recorded a loss of 280 $ 5 million on sales of 322 $ 7 million in the same period of 2019

Choosing a direct listing instead of an IPO allowed both companies to publicly offer future performance forecasts Palantir calls for 46% to 47% revenue growth in the third quarter, from 41 % to 43% for full year 2020 and over 30% in 2021 For fiscal 2021, Asana forecasts revenue of $ 210 million to $ 213 million, which represents year-over-year growth. ‘other from 47% to 49%

Despite the COVID-19 pandemic, the IPO market has been strong in 2020 Besides direct listings on Wednesday, Wall Street was expecting 11 IPOs this week, ending the busiest third quarter for Offerings Since Dot-Com Boom, Renaissance Capital Says Software offerings have been a big part of it, as the pandemic has created demand for strong software offerings that can keep workers doing jobs from home – Snowflake Inc
Unity Inc Software
and others thrived when they first hit the market

President Donald Trump and former Vice President Joe Biden have argued several times – and even debate moderator Chris Wallace – over a number of topics at the start of the first debate

Wallace Witkowski came to The Associated Press’s MarketWatch in New York, where he was a business reporter specializing in pharmaceutical companies He previously wrote reports for trade publications covering the drug and medical device industries until 1998 Based in San Francisco, he focuses on US actions Follow Wally on Twitter at: @wmwitkowski

Jeremy Owens is the Chief Technology Editor of MarketWatch and the San Francisco Bureau Chief You can follow him on Twitter @ jowens510

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World News – CA – Asana and Palantir Begin Trading Well Above Reference Prices in Direct Double Quotes



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