Israeli international e-commerce platform Global-E has raised $375 million in its initial public offering (IPO) on Nasdaq, at a company valuation of $3.55 billion. The amount could grow by a further $56.3 million, if the underwriters exercise their options to buy more shares at the IPO price of $25, in the next 30 days.
On its first day of trading on Wall Street, Global-E's share price rose 2% to $25.50, giving a market cap of $3.6 billion. Goldman Sachs, Morgan Stanley, and Jefferies acted as lead book-running managers for the offering while Piper Sandler & Co., JMP Securities, KeyBanc Capital Markets and Raymond James & Associates acted as co-managers.
Global-E has developed a platform, which it says removes obstacles in buying online from abroad. The platform allows communication with buyers in 25 languages and purchases in more than 100 currencies while calculating local sales taxes. Global-E claims that the better customer experience that the platform provides improves sales.
The company was founded in 2013 by CEO Amir Schlachet, COO Shahar Tamari and CRO Nir Debbi. According to IVC, Global-E has raised $114 million in six financing rounds, the most recent of which was last June. Global-E has 300 employees, mainly in Israel and the UK. 59% of Global-E's customers in 2020 were in the UK.
According to Global-E's prospectus, revenue grew by $211 million in 2020 to $774 million with a $3.9 million net profit after a net loss of $7.5 million in 2019.
Global-E's biggest shareholders were Cross Ship with an 18.4% stake worth $655 million, Deutsche Post with a 15% stake worth $536 million, Red Dot Capital Partners with a 13.1% stake worth $466 million, and Apax Partners AMI Fund with a 10.9% stake worth $346 million. Shopify International has a 5.5% stake worth $194 million. Funders Schlachet and Tamari each have stakes worth $159 million and Debbi's stake is worth $166 million.
Global-E's IPO was the second successful Israeli IPO within 24 hours. On Tuesday, web behavior and traffic analytics company Similarweb raised $165 million, at a company valuation of $1.6 billion.
Published by Globes, Israel business news - en.globes.co.il - on May 13, 2021
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