Thoughtworks’ NASDAQ debut a bumper hit, firm valued at AU$12 billion

Highlights

  • Thoughtworks Holdings’ (NASDAQ:TWKS) kicked off trading on NASDAQ on 15 September.
  • The stock surged nearly 24% on its NASDAQ debut on Wednesday, valuing the company at nearly US$9 billion (AU$12.3 billion).
  • The company was aiming for nearly US$6.10 billion valuation. 

Thoughtworks Holdings (NASDAQ:TWKS) is riding high on its blockbuster NASDAQ debut. The stock received a strong market response, shooting up nearly 24% on its debut on Wednesday, valuing the company at nearly US$9 billion (AU$12.3 billion). The share opened at US$26, against its initial public offering (IPO) price of US$21. It was well above the targeted price range of US$18 to US$20. The company was aiming for nearly US$6.10 billion valuation.

The stock climbed as high as 42% to US$29.89 before ending the day 40% higher at US$29.39. On Thursday, the stock closed over 7% higher at US$31.46.

The software consulting company’s NASDAQ trading started on 15 September and will close on 17 September. Chicago, Illinois-based company earlier announced that its parent company, Turing Holding, will be renamed as Thoughtworks Holding before the completion of the IPO process. It had filed the paperwork with regulators under the name Turing Holding Corp.

Thoughtworks, Thoughtworks IPO, Thoughtworks listing

Source: Thoughtworks raised about US$344 million by selling 16.4 million shares in the IPO. © Jojojojo  | Megapixl.com

Backed by Germany's Siemens, Thoughtworks completed the pricing of its IPO of 36.8 million shares of common stock at US$21 per share (above the targeted price range). Thoughtworks raised about US$344 million by selling 16.4 million shares in the IPO. Other investors, which includes Apax Partners advised funds, sold nearly 20.4 million shares.

Goldman Sachs and JP Morgan were the lead underwriters for the IPO.

A few major clients of the company include Telus Corp, Kroger, Natura, Credit Suisse and Daimler and Porsche. NAB, Suncorp, IAG and Zip are among the clients in Australia.

Meanwhile, in three months ended June, the company reported a 40.3% growth in revenue to US$260.4 million. The company has over 9000 employees as of June, operating in 17 countries.

Bottom Line

Thoughtworks’ strong NASDAQ debut sets an encouraging path ahead for the 28-year-old firm. However, it will be interesting to see how the stock performs going forward considering the weak overall sentiment due to sluggish economic rebound and ongoing coronavirus pandemic.

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