In recent news, Monday.com finished the most profitable initial public offering (IPO) ever by a company based in Israel, on Wall Street. Its shares were traded for the very first time on Nasdaq. The work operating system made an announcement beforehand that the prices of its shares had been fixed at $155 per share. However, the shares climbed by 15% and came to $178, on the very first day of trading. The Israeli company was able to raise a total of $574 million when its market value was around $6.8 billion.
Just last week, the company announced that it was planning on selling at least 3.7 million shares for $125 a piece, which could go as high as $140. But the company had not anticipated that the demand would be even higher, leading to it raising a significant amount of funds.
Monday.com receives its backing from well-known venture capital firms, such as Sapphire Ventures. In addition, Hamilton Lane is the current investment manager for the company.
This is the biggest IPO to date, which has been completed by an Israeli company. The previous record-holder was Mobileye, which took the lead back in 2014, by going public at a valuation figure of $5.3 billion. The company was acquired only three years later by Intel for a figure of $15 billion.
eToro and ironSource were just recently valued at a higher figure than Monday.com. However, the public offerings from these two companies will be completed only through SPACE mergers, which have not yet been finalized.
The Tel-Aviv-based corporation has come up with a work operating system (Work OS), which allows organizations, irrespective of their size to create processes and tools they need to get a handle on each and every aspect of their work. The company was founded in the year 2012 and is currently led by Eran Zinman and Roy Mann, co-Chief Executive Officers.
Mann and Zinman revealed that they took the company private because in their opinion, it was the right time to do so, given the revenue and the condition of the market. They added that this is only the beginning of them going on to become a large company.
Moreover, the investment arm of Salesforce.com, as well as Zoom Video Communications, both announced that they will be buying $75 million shares of Monday.com in a private placement.
In May of last year, the valuation of the Israeli company after its previous trading round was reported to be at $2.7 billion.
Allen & Co., Goldman Sachs, Jefferies, as well as J.P. Morgan are some of the most active underwriters for the IPO of Monday.com. It will soon be listed on Nasdaq, using the symbol ‘MNDY’.
The revenue of the Israeli company increased by 85% to a figure of $59 million in the last three months, which ended on 31st of March. However, its net loss widened from $19.9 million to $39 million in the same time span.