PagerDuty pops nearly 60% in debut as tech IPO market heats up

Re:PagerDuty pops nearly 60% in debut as tech IPO market hea... by raiyu on Thursday April 11, 2019 @01:10PM (#19636766)

Looks like investors were very hungry for this one and the high jump on the first date indicates that they are viewing Pagerduty in the same market segment as MongoDB and Twilio. Same set of customers, expanding market as each of those customers increase their server foot print.

Also with the 50% pop looks like investors were ready to give them future growth so the company definitely left money on the table with their IPO pricing.

But none the less amazing IPO. Hopefully stock stays in the range on Friday.

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Re:PagerDuty pops nearly 60% in debut as tech IPO market hea... by shhehebehdh on Thursday April 11, 2019 @06:51PM (#19640086)

I don’t really get what makes this an amazing IPO. Afaict they left 33% of the money on the table. How is that a good thing for the company or the shareholders?

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Re:PagerDuty pops nearly 60% in debut as tech IPO market hea... by sb8244 on Thursday April 11, 2019 @07:14PM (#19640261)

It would be good for people who bought in (higher margin), good for people selling in 6 months (employees), and bad for the company (money on the table).

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Re:PagerDuty pops nearly 60% in debut as tech IPO market hea... by dcaisen on Thursday April 11, 2019 @08:13PM (#19640632)

Don't forget about the underwriters (investment bankers) who will be paid a hefty sum by Pagerduty (despite underpricing the IPO) and who also just got a ton of goodwill from their top trading clients who got those IPO allocations

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Re:PagerDuty pops nearly 60% in debut as tech IPO market hea... by analyst74 on Friday April 12, 2019 @02:44AM (#19642543)

I don't see how this is better for employees, assuming there is a stable price X, whether you price IPO at X * 0.8 or X * 1.2, by the time 6 months is passed and employees are able to sell, it probably have already converged to X.

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Re:PagerDuty pops nearly 60% in debut as tech IPO market hea... by breerly on Thursday April 11, 2019 @07:47PM (#19640456)

This sounds right.

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Re:PagerDuty pops nearly 60% in debut as tech IPO market hea... by dalbasal on Friday April 12, 2019 @06:01AM (#19643492)

One way or another, that shouldn't be that big a deal.

The company doesn't necessarily raise that much on IPO day. The importance of raising that sum at a 20% higher/lower valuation probably isn't the biggest thing at stake.

The IPO isn't primarily fund raising, especially for this current crop of more mature unicorns. It's primarily liquidity generating.

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Re:PagerDuty pops nearly 60% in debut as tech IPO market hea... by deathhand on Thursday April 11, 2019 @09:14PM (#19641010)

I think its most likely due to high usage of the service & income of those who use the service. Devops can make bank, and devops need this SAAS.

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