Prime Highlights:
- StubHub priced its IPO at $23.50 per share, raising $800 million and valuing the company at $8.6 billion.
- The company plans to use the funds to expand its platform, improve customer experience, and strengthen its position in the global ticketing market.
Key Facts:
- StubHub’s first-quarter revenue grew 10% year-over-year to $397.6 million, though its net loss widened to $35.9 million.
- The IPO comes after StubHub delayed its public debut twice, and the final valuation is below its initial target of $16.5 billion.
Key Background:
Online ticket marketplace StubHub has priced its initial public offering (IPO) at $23.50 per share, placing the company’s valuation at $8.6 billion. The IPO, which raised approximately $800 million, marks a significant step for the ticketing platform after several years of delays. StubHub shares are expected to begin trading on the New York Stock Exchange under the symbol “STUB.”
The company had previously provided a price range of $22 to $25 per share, and the final pricing landed at the midpoint of that range. This successful pricing comes after the company postponed its IPO twice, most recently due to market volatility caused by tariffs announced in April.
Founded in 2000 by Eric Baker, StubHub was acquired by eBay seven years later for $310 million. In 2020, Baker reacquired the company for roughly $4 billion through Viagogo, his European-based ticket marketplace. Since then, StubHub has been preparing for a public listing, filing an updated prospectus in August to restart the process.
StubHub’s first-quarter financials show a 10% increase in revenue compared with the same period last year, reaching $397.6 million. Operating income stood at $26.8 million, while the company’s net loss widened to $35.9 million from $29.7 million a year earlier. Although StubHub made a net loss, its revenue growth demonstrates that the firm is doing fine in the competitive online ticketing industry.
The IPO is also coming when the stock market is just starting to pick up after a sluggish time due to high inflation rates and the increase in interest rates. Recently, companies like Klarna, Figma, and cryptocurrency exchange Gemini have successfully started trading on the NYSE after delays.
StubHub had first hoped for a $16.5 billion valuation, but the final IPO price shows a more careful market approach. Analysts say the company’s steady revenue and strong presence give it a good foundation for growth.
With the IPO done, StubHub plans to use the money to grow its platform, improve customer experience, and strengthen its place in the global ticketing market. Investors will be watching closely as the stock starts trading on the NYSE.
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