Toast (TOST) & Freshworks (FRSH) IPOs: Price, volume, other details

Highlights

  • Toast, Inc. (NYSE: TOST) plans to raise around US$869.6 million, with an offering price of US$40 per share in the IPO.

  • Freshworks Inc. (NASDAQ: FRSH) aims to raise around US$1 billion, with an offering price of US$36.00 per share in the IPO. 

  • Both the stocks started trading on the exchanges on Wednesday.

Restaurant software company Toast Inc. (NYSE: TOST) and SaaS solutions provider Freshworks Inc. (NASDAQ: FRSH) launched their initial public offerings (IPOs) on Wednesday. Both the stocks started trading in the respective exchanges on the same day.

The following are some key details of the IPOs.

Toast, Inc. (TOST)

The Boston-based company had applied for the IPO on August 27. Toast has offered 21,739,131 shares of Class A common stock and an additional 3,260,869 shares for the underwriters in case of overallotment. The stocks began trading on NYSE under the symbol TOST. 

The offering price is US$40 per share, higher than the initial range of US$34.00 to US$36.00. The company plans to raise around US$869.6 million at this price.  

Toast Inc. is a cloud-based end-to-end technology platform for restaurants. It provides SaaS products, financial technology solutions, and an eco-system for third-party partners.

Its investors include Tiger Global PIP, Bessemer Venture Partners, and Technology Investment Dining Group. 

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Toast’s revenue was US$704 million, and net loss was US$(1.13) per share diluted for the six months ended June 30, 2021, compared to revenue of US$344 million and a net loss of US$(0.63) per share diluted in the six months ended on June 30, 2020.

In the twelve months ended June 30, 2021, around 48,000 restaurants used its platform and processed over US$38 billion in gross payments.  

Toast Inc. was founded in 2011. 

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Toast Inc (TOST) and Freshworks Inc (FRSH) launched their IPOs on Wednesday.

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Freshworks Inc. (FRSH)

The San Mateo, California-based Freshworks applied for IPO on August 27. The stock started trading on NASDAQ under the ticker symbol FRSH on Wednesday.

The company has offered 28,500,000 shares of Class A common stock and an additional 2,850,000 shares for underwriters in case of overallotments. 

The price range was initially set between US$32.00 and US$34.00 per share. However, the final offering price was US$36.00. It aims to raise around US$1 billion in the IPO. 

Freshworks provides customer relationship management solutions and IT services through its SaaS products. As of June 30, 2021, around 52,500 businesses used its products.

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Its main investors include entities affiliated with Tiger Global PIP, Accel India, and Sequoia funds.

For the six months ended June 30, 2021, its net loss was US$(9.8) million on the revenue of US$168.9 million compared to a net loss of US$(57.15) million and revenue of US$110.5 million in the previous year’s corresponding period, as per the company filing. 

Freshworks was founded in 2010. 

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Bottomline

Some six companies have launched their initial public offerings on NYSE and NASDAQ Wednesday, following a host of other IPOs this month. As the economy recovers from the pandemic, many companies plan to expand their operations by raising funds through IPOs. However, investors should carefully evaluate the stocks before investing.

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