When BigCommerce, the Texas-basically basically based Shopify competitor, first announced an IPO ticket vary, the numbers seemed rather of mild.
With a unfold of factual $18 to $20 per fragment, it seemed that the firm used to be concentrating on a valuation of round $1.18 billion to $1.31 billion. Given that BigCommerce had revenue of “between $35.5 million and $35.8 million” in Q2 2020, up rather of over 30% from the 365 days-within the past duration (and better margins than Shopify) its implied revenue multiple that its IPO ticket vary indicated felt low.
At the time, TechCrunch wrote that “BigCommerce feels low ticket at its contemporary multiple,” and that must you added “contemporary market exuberance for cloud shares that we’ve stare in other IPOs … it feels method more underpriced.”
Those feelings get been borne out. Recently, BigCommerce announced a new, better IPO ticket vary. The firm now intends to ticket its IPO between $21 and $23 per fragment. Let’s calculate its new valuation, review that to its preliminary Q2 results to safe new multiples for the upcoming e-commerce instrument IPO, and settle how its latest investors are safe aside to fare in its impending debut.
By though-provoking its pricing up from $18 to $20 to $21 to $23, BigCommerce boosted its IPO vary by 16.7% at its lower quit and 15% on the upper quit. At its new costs BigCommerce is value between $1.38 billion and $1.51 billion.