Twilio Strikes Gold in Its IPO
Cloud-based communication provider Twilio has made its entry into the NYSE with a hugely successful IPO.
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When it comes to online stock trading, it helps to watch out for new opportunities and new players. Twilio is the one we’re talking about, and what a grand entry it has made into the New York Stock Exchange (NYSE) with the ticker symbol TWLO! Twilio Has a Grand $150 Million IPO Twilio’s shares have nearly doubled in their first trading day on Thursday, the 23 rd of June 2016. The tech company could raise $150 million in its IPO. That’s quite an achievement for the San Francisco-based company which manufactures software for enabling companies such as cab service providers communicate with customers via phone notifications, text messages and other methods while maintaining the privacy of the customers. Uber, the cab service uses Twilio through the Uber app to notify customers about the location of their cab. It’s a cloud platform that’s been vital to the success of Uber and also WhatsApp, that uses Uber technology. What makes Twilio’s achievement even more spectacular is that it comes right in the middle of an IPO lean period, and it’s quite rare for a tech company to attain that. Its public market capitalization has turned out to be even greater than its private valuation which stood at $1 billion. In Thursday’s afternoon trade, the company’s shares rose by 94%, reaching beyond $29. This resulted in the company getting a $2.4 billion market cap, which was a whopping double the market cap it set with the share issue price of $15. The shares closed 91% higher than the issue price. A Turnaround for the Loss Making Firm It seems relieving for Twilio to be successful in its IPO. In the eight years of its existence the company never managed to make a profit. In 2015 it reported a $39 million net loss which was a greater figure than the $27 million loss in 2014. Though its revenue experienced an 88% increase to $167 million in 2015 from 2014, rising costs increased the loss figure.
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After the Atlassian Corp IPO on December 10, 2015, Twilio has been the first company to have priced above range. Much of this performance can be attributed to the roadshow conducted by the company which managed to generate investor interest. The roadmap the company has laid out for its growth could also have contributed to this plus the fact that the market is in a stabilized state after an acutely volatile period. Experts, though, have warned not to make too much of the deal, with the IPO market still to go some way. For identifying opportunities and benefiting from them in online stock trading, it requires the assistance of an experienced broker dealer.
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