CS Disco is listed on the New York Stock Exchange.
NYSE
Five companies opened for trading on Wednesday in yet another big week for initial public offerings.
At least 20 companies are expected to list their shares this week, in one of the busiest time periods for the IPO market, data from Renaissance Capital shows.
So far this year, 240 companies have gone public using a traditional IPO, raising $91.6 billion, according to Dealogic. That is more than double the 76 companies, valued at $28.3 billion, that listed their shares for the same time period in 2020.
Wednesday’s group includes CS Disco, Kaltura, Paycor HCM, VTEX, and Twin Vee PowerCats. CS Disco and VTEX are trading on the New York Stock Exchange; the others are listed on the Nasdaq.
Three of the companies—CS Disco, Paycor HCM, and VTEX—priced their deals above their expected price ranges. Such increases are typically signs of strong demand.
One of the stronger debuts came from CS Disco (ticker: LAW). The stock opened at $45.26 and closed at $41, up 28% from its offer price.
The Austin, Texas-company raised $224 million after selling 7 million shares at $32 each. CS Disco had filed to sell 7 million at $26 to $29, which it boosted to 7 million at $30 to $31 on Monday.
BlackRock (BLK) and Dragoneer Investment Group have indicated interest in buying $25 million worth of stock each at the IPO price, according to a prospectus for the offering.
Founded in 2013, CS Disco provides cloud software that aims to simplify ediscovery, legal document review and case management for businesses, law firms, legal services providers, and governments. The software helps centralize legal data into a single solution, while improving security and privacy for clients. As of March 31, CS Disco had 909 customers, including DISH, Southwest Airlines, WeWork, Perkins Coie, and Shearman & Sterling, the prospectus said.
VTEX (VTEX) shares kicked off at $25.10 and ended at $22.18, up nearly 17% from its offer price. The New York company sold 19 million shares at $19 each, above its $15-to-$17 price range.
The company has raised $365 million in funding, Crunchbase said. Investors include Tiger Global, Lone Pine Capital, Constellation, Endeavour Catalyst and SoftBank. Tiger Global has indicated it is interested in buying $50 million worth of shares at the offer price, a prospectus said.
Founded in Brazil, VTEX provides a cloud-based commerce platform that helps brands and retailers execute their commerce strategy, including building their online stores, managing orders, and creating marketplaces to sell products from third-party vendors, a prospectus said. Customers include L’Oreal, Motorola, and Sony (SONY).
Paycor HCM (PYCR) kicked off at $28 and ended at $26.05, up 13% from the offer price.
The human-resources software provider also priced above its expected range. Paycor ended up selling 18.5 million shares at $23, up from its $18 to $21 price range.
Paycor provides software that helps small and medium-size businesses handle their payrolls, bring employees on board, update staff information, and comply with tax requirements. Most of its customers, accounting for 81% of its billings, have from 10 to 1,000 employees. The company has more than 40,000 clients, including the Detroit Zoo, Wendy’s, and Two Men and a Truck, according to its website.
Paycor employs a little over 2,000 people, including 400 sales and about 700 in customer services. It plans to use proceeds from the IPO to increase both of those, according to CEO Raul Villar Jr.
One of the main reasons Paycor sought to go public was to reward its employees, Villar told Barron’s. “We’ll have an employee stock purchase plan available for every associate at Paycor to participate in our growth,” he said.
Paycor has been operating cash flow neutral for the past few years, Villar said. “We will have no debt at the end of the transaction,” he said.
Shares of Kaltura (KLTR), a provider of real-time and on-demand video products, opened at $11.50 and closed at $12, up 20% from its offer price.
The New York company raised $150 million after cutting the size of its deal by 36% to 15 million shares at $10 each. It had filed to offer 23.5 million shares at $14 to $16, which it reduced to 15 million $9 to $11 on July 12, a prospectus said.
Founded in 2006, Kaltura provides technology that powers several forms of videos including video portals, town halls, video messaging, webinars, virtual events and meetings, as well as virtual classrooms. It has over 1,000 customers including IBM (IBM), Dropbox (DBX), Bosch, Thomson Reuters (TRI) and SAP (SAP).
Twin Vee PowerCats (VEEE) also posted a solid first day. The stock kicked off at $6.70 and ended at $7.49, up nearly 25% from its offer price. The Fort Pierce, Florida-company raised $18 million after slightly boosting the size of its deal to 3 million shares at $6 each. It had filed to offer 2.8 million shares at $5 to $6 each.
Launched in 1996, Twin Vee makes and markets recreational and commercial power catamaran boats. It currently has 10 gas-powered models in production that range in size from a 24-foot, dual engine, center console to its newest 40-foot offshore 400 GFX.
Write to Luisa Beltran at [email protected]
