monday.com ends first day trading sharply higher

Eran Zinman and Roy Mann Photo: Netanel Tobias

The Israeli work operating system company is already worth $7.85b, as the co-founders say they are only just beginning.

The share price of Israeli work operating system company monday.com (Nasdaq: MNDY) ended its first day of trading on Wall Street up 15.4% at $178.87, giving a market cap of $7.85 billion.

On Wednesday, monday.com issued 3.7 million new shares, 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. This makes monday.com the largest-ever IPO by a company headquartered in Israel and with major Israeli ownership (Playtika's IPO in January was bigger but the gaming company is owned by Chinese investors).

At the same time as the IPO, Salesforce Ventures and Zoom Video Communications bought $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.

After the IPO Zinman told "Globes, "We believe that this is only the start and we are operating in very fertile territory. We are only at the start of a trend and we see long-term growth over many years. We certainly intend growing very quickly and taking advantage of the huge opportunities that we have identified. We are proud to be an Israeli company with its headquarters, which will continue to be located in Israel and to build a large company and world leader in a category that we created - work operating systems.

"We have identified a huge opportunity that basically includes everybody who works with a computer, about 1.2 billion information workers in the world. We want to give to organizations and to individuals the power to build their own software so that they can build and take control of the future management of their organization."

Zinman and Mann stress that their employees have benefited from the IPO through the shares that they hold. "This has been important to us from the start. The success is shared by the entire company and each and every one of our employees around the world."

Published by Globes, Israel business news - en.globes.co.il - on June 11, 2021

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

Eran Zinman and Roy Mann Photo: Netanel Tobias
Eran Zinman and Roy Mann Photo: Netanel Tobias
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