After Shopify’s huge quarter, BigCommerce raises its IPO price range – ProWellTech
When BigCommerce, the Texas-based Shopify competitor, announced an IPO price range for the first time, the numbers seemed a little light.
With a range between $ 18 and $ 20 per share, it emerged that the firm was aiming for a valuation of around $ 1.18 to $ 1.31 billion. Since BigCommerce posted “between $ 35.5 million and $ 35.8 million” revenues in the second quarter of 2020, up just over 30% from the prior year period (and margins better than Shopify), the multiple of the implied revenue that its IPO price range indicated was low.
At the time, ProWellTech wrote that “BigCommerce feels cheap in its current multiple” and that if you’ve added “the recent market exuberance for cloud shares we’ve seen in other IPOs … it seems even less expensive.”
Those feelings have been confirmed. Today, BigCommerce has announced a new higher IPO price range. The company now plans to quote its IPO between $ 21 and $ 23 per share. We calculate his new valuation, compare that with the second quarter preliminary results to get new multiples for the upcoming e-commerce software IPO, and imagine how his newest investors are ready to pay for his upcoming debut.
Moving its prices from $ 18 to $ 20 to $ 21 to $ 23, BigCommerce increased its IPO range by 16.7% at its lower end e 15% at the upper end. At its new prices, BigCommerce is worth between $ 1.38 and $ 1.51 billion.