Four companies kicked off life as public entities Wednesday with Sono Group posting the strongest first day. Shares of the German solar-powered electric-vehicle developer rocketed nearly 155% from the $15 offer price.
Also on the list were Braze, a maker of customer engagement software; Iris Energy, a crypto miner; and UserTesting, which offers software that helps companies gain insight on interactions with their customers.
In all, eight companies are listing their shares this week as the IPO market prepares to shut down for the Thanksgiving holidays.
Sono Group (ticker: SEV), parent of Sono Motors, was the first to open Wednesday. Shares kicked off at $20.06 and closed at $38.20, up $23.20 from the offer price.
Sonos is benefiting from the debut of Rivian Automotive (RIVN) last week. The electric truck maker delivered the biggest IPO since 2014 when it raised $11.9 billion. Shares of Rivian gained more than 29% from its $78 IPO price on Nov. 10. The stock has since nearly doubled, trading Wednesday at $144.35.
Sono has developed the Sion, a solar-powered electric car that can recharge itself using panels installed on its exterior. Sono said it had received more than 16,000 reservations on the car as of Nov. 5. The Munich, Germany, company sold 10 million shares at $15 each, the mid-point of its $14 to $16 price range, raising $150 million.
Braze (BRZE), which delivered the biggest deal Wednesday, also rose more than 37%. The stock launched at $87.20 and ended at $93.39, up $28.39 from its offer price.
Founded in 2011, Braze’s customer-engagement software allows more than 1,000 brands to listen to and understand their clients. The company had 3.3 billion monthly active users as of July 31, up from 2.3 billion in January 2020. Late Tuesday, the New York company raised $520 million after selling 8 million shares at $65, above its $55 to $60 range.
Bill Magnuson, Braze’s chairman and CEO, said the firm had been preparing to go public for some time. It did consider a direct listing but ended up going with a traditional IPO, he said. Magnuson estimated that it took just under 12 months — from the advent of the board meeting to listing at the Nasdaq—for Braze to go public with a traditional IPO.
“The traditional process was the best way to welcome the newest constituent to the Braze family which is the public market investor,” said Isabelle Winkles, Braze’s CFO.
Braze, which recently opened offices in Germany and Japan, plans to use proceeds from the IPO to invest domestically and internationally, Winkles said. It will also continue to invest in R&D and will consider acquisitions, she said. Braze has not taken part in M&A up to this point. “We will evaluate some potential targets in the future,” she said.
Magnuson and Winkles spoke to Barron’s from the Nasdaq, where Braze employees rang the opening bell. Braze hasn’t raised financing since its $80 million Series E round in 2018, Magnuson said. At $93.39, Braze’s valuation is $8.4 billion. “We never officially became a unicorn until today,” he said.
UserTesting (USER), which is also in the customer engagement business, stayed above its IPO price. The stock opened at $15.25 and closed up one penny at $14.01.
UserTesting had filed to offer about 14.2 million shares at $15 to $17 but ended up selling 10 million shares at $14. UserTesting makes self-guided videos that help companies get insight on interactions with their customers.
Iris Energy (IREN) was the only IPO Wednesday to drop below its offer price, technically make it a broken deal. Shares of Iris opened at $28 and finished at $24.45, down nearly 13% from its offer price. The Australian company sold about 8.3 million shares at $28 a share, more than its $25 to $27 price range.
The company has been mining Bitcoin since 2019. It has liquidated all the Bitcoin it has mined and didn’t have any on its balance sheet as of Sept. 30, the prospectus for its deal said.
Write to Luisa Beltran at [email protected]
