After two initial public offerings above the raised areas, Unity added value to its upcoming debut this morning. The well-known unicorn is expected to start trading this Friday, fixing prices after the bell on Thursday.
In this case, the company expects gaming platforms to be worth between $ 44 and $ 48 per share, up from the initial IPO price range of $ 34 to $ 42 per share.
unit An increase in the IPO price range comes as no surprise given that software companies have seen a surge in recent times. Just yesterday evening, developer software company JFrog and data-oriented cloud company Snowflake rated their public debuts in terms of the increased price intervals.
There is a great demand for growth-oriented software stocks in today̵
At $ 48 per share, Unity would sell shares worth $ 1.20 billion and be valued at around $ 12.6 billion. Given the last quarter’s revenue ($ 184.3 million) and the annualized run rate ($ 737.4 million), Unity is valued at around 17.1x revenue. (You can increase this multiple using a trailing sales metric instead of an annualized run rate statistic, or lower it using a forward sales estimate.)
We’ll have a better sense of how hot the public markets are later today at Snowflake and JFrog are launching, but Unity’s upward pricing bodes well for all three companies. Unity investors will do well regardless of the final price. The company last raised $ 125 million in mid-2019, valued at around $ 6.0 billion. Former shareholders will do even better on the transaction.
Sumo Logic is expected to debut this week. More on that IPO here if you’re so inclined.