Palantir surges 38% in New York debut, valuation at nearly $22 billion By Reuters

© Reuters. A person poses in front of a banner featuring the logo of Palantir Technologies (PLTR) at the New York Stock Exchange (NYSE) on the day of their initial public offering (IPO) in Manhattan, New York City


(Reuters) – Shares of Palantir Technologies Inc (N:), the U.S. data analytics firm known for its work with the Central Intelligence Agency and other government bodies, jumped 38% in their market debut on Wednesday, valuing the company at nearly $22 billion.

Its shares traded at $10 apiece, compared with a reference price of $7.25 per share set by the New York Stock Exchange on Tuesday.

The listing is a landmark moment for Palantir and puts an end to years of speculation about when the company, co-founded by billionaire Peter Thiel in 2003, would ultimately go public and how much would it actually be worth.

Denver, Colorado-based Palantir is going public at a time of strong investor demand for new stocks, particularly of technology companies that promise rapid growth.

The company, led by CEO Alex Karp, has seen strong demand for its services, with revenue rising almost 50% to $481.2 million in the first six months of 2020 from the comparable period a year earlier.

However, it has yet to turn a profit in its 17 years of existence, posting a net loss of $164.7 million in the same period, down from a loss of $280.5 million a year earlier.

It was valued at $20 billion in a private fundraising round in 2015.

Palantir opted to go public through a direct listing rather than a traditional initial public offering (IPO), meaning it did not raise any money but allowed its investors to sell more shares.

Only two major companies – workplace messaging platform Slack Technologies Inc (N:) in 2019 and music-streaming service Spotify Technology SA (N:) in 2018 – have taken the direct-listing route previously.

Workplace software maker Asana Inc (N:) also went public on Wednesday through a direct listing and its shares opened up 29%.

Palantir analyzes large amounts of data for U.S. government defense and intelligence agencies, global banks and energy companies.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.