Who Made Money On Today's Trade Desk IPO?
Trade Desk Inc. (NASDAQ: TTD) rekindled interest in its IPO when it opened with a big bang on Wednesday. No one would have expected the kind of opening that the IPO witnessed when it commenced trading 60 percent higher on the exchange.
On Monday night, the company lifted its price range from $14–$16 to $16 –$18, and it priced its 4.667 million in Class A shares at $18 a share, which was the upper end of the guided price range. The stock remained strong with 60+ percent gain on Wednesday.
The IPO's underwriters were Needham, Raymond James, RBC Capital Markets, Jefferies and Citigroup.
Trade Desk delivered net income of $15.9 million in 2015 with EBITDA of $39.2 million in the same period. The company generated $113.8 million revenue, representing 156 percent growth from the preceding year, according to its SEC filing.
At time of writing, the stock jumped $11.33, or 62.94 percent, to $29.33. The stock traded between $27.81 and $29.94.
Those who have invested in the IPO have a solid return on the first day itself. Thirteen investors have invested their money through different means. For instance, Bridge Bank and Opus Bank have participated in debt financing in the earlier rounds.
According to Crunchbase.com, the following have all participated in seed and venture rounds conducted earlier as well:
- Double M Partners: Seed and Series B; partner Mark Mullen.
- Founder Collective: Seed (lead); partner Eric Paley.
- IA Ventures: Seed (lead) and Series B; partner Roger Ehrenberg.
- Joshua Stylman: Seed.
- Kortschak Investments, L.P.: Seed; partner Walter Kortschak.
- Neu Venture Capital: Seed; partner Jerry Newman.
- Revel Partners: Seed.
- SV Angel: Seed.
- Wellington Management: Venture (lead).
- Wider Wake Networks: Seed.
Hermes Growth Partners was also listed as participating in the Series B (lead) round, with partner Alex Kayyal.
While the retail and institutional investors who participated in the IPO, are undoubtedly the major gainers, the biggest gainers appear to be those who got stock-based compensation in the past. According to its SEC filing, the weighted average granted fair value per share were $0.82 and $8.39 for the six-month period ended June 30, 2015 and 2016, respectively.
The company issued 135,000 and 392,000, respectively, in the same periods.
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