monday.com completes Nasdaq IPO at $6.8b valuation

Eran Zinman and Roy Mann Photo: PR

The Israeli work operating system company is raising $574 million and an additional $57.4 million, if the underwriters exercise their options.

Israeli work operating system company monday.com has very successfully completed the pricing of its Nasdaq IPO. The company announced that it had set a price of $155 per share, well above the range of $125-140 that it had set last week. The higher share price gives Monday.com a valuation of $6.8 billion, making it one of the largest ever offerings by an Israeli company on Wall Street. The company will begin trading later today on Nasdaq under the MNDY ticker.

monday.com has issued 3.7 million new shares, so that it is raising $574 million, which could increase by a further $57.4 million, if the underwriters exercise their options within 30 days to buy 370,000 shares at the IPO price. Goldman Sachs and JP Morgan are the lead underwriters with the participation of Allen & Company, Jefferies and other investment banks.

At the same time as the IPO, Salesforce Ventures and Zoom Video Communications have committed to buying $75 million of shares each in a private placement.

In the most recent financing round completed by monday.com in 2019, the company's valuation was $1.9 billion, while this increased to $2.7 billion last year when Monday.com existing shareholders sold shares in a secondary deal.

monday.com, which was founded in 2012 by co-CEOs Roy Mann and Eran Zinman, has 800 employees and is headquartered in Tel Aviv. monday.com has developed a work operating system (Work OS), where organizations of any size can create the tools and processes they need to manage every aspect of their work.

In 2020, monday.com's revenue grew to $161 million from $78.1 million in 2019, and it made an operating loss of $151 million. The company's net loss widened from $91.6 million in 2019 to $152 million last year. In the first quarter of 2021, revenue was $59 million, up 84.7% from the corresponding quarter of 2020, while the net loss widened from $19.9 million to $39 million.

Monday.com's IPO is the fifth by an Israeli company on Wall Street since the start of 2021, after Playtika, Zim, Similarweb and Global-E. All the IPOs were at valuations of over $1 billion, with Monday.com becoming the second largest after Playtika. More flotations by Israeli companies are expected in the coming months with WalkMe, Kaltura and SentinelOne all having filed prospectuses with the US SEC.

Published by Globes, Israel business news - en.globes.co.il - on June 10, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Eran Zinman and Roy Mann Photo: PR
Eran Zinman and Roy Mann Photo: PR
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