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Cloud based e-commerce company BigCommerce Holdings launched it's IPO Wednesday under the ticker BIGC after raising $216.5 million. IPOs can be boom or bust, Uber, Dropbox, Pinterest, Lyft, Spotify are some of the recent names.

BigCommerce

BigCommerce Holdings (BIGC) raised $216.5 million late Tuesday, above expectations, as the e-commerce company drew heightened interest from investors. The BigCommerce IPO started trading Wednesday under the ticker BIGC.

The company priced 9.02 million shares at $24. That was above its estimated price range of $21 to $23. It originally planned to offer 6.85 million shares in a range of $18 to $20.

Lead underwriters are Morgan Stanley, Barclays and Jefferies In addition, investment firm Tiger Global Management has indicated it is interested in purchasing up to 20% of the shares in the offering. In addition to the BigCommerce IPO, also trading Wednesday is cloud company Rackspace Technology.

Big Commerce on its debut opening strongly at $68.00 and quickly ramped to a high of $93.99 at lunch time the stock was trading at $80.82 up

BIGC Open

About Big Commerce

BigCommerce provides an Austin, Texas cloud-based platform used by businesses to create online stores.  Includes a platform for launching and scaling e-commerce operations, including store design, catalog management, hosting, and checkout.

BigCommerce helps manage approximately 60,000 online stores across industries worldwide. In addition, its customers include Avery Dennison (AVY), Ben & Jerry's and Sony (SNE). In 2019, the company reported revenue of $112.1 million, up 22% from the prior year. However, it showed a net loss of $42.6 million vs. $38.9 million. Also, First-quarter revenue jumped 30% to $33.2 million, with a net loss of $4 million, vs. $10.5 million.

BigCommerce Compared To Shopify

"Our software-as-a-service pla BigCommerce is compared to Shopify (SHOP). tform simplifies the creation of beautiful, engaging online stores by delivering a unique combination of ease-of-use, enterprise functionality, and flexibility," said the BigCommerce IPO filing. "The transition from physical to digital commerce constitutes one of history's biggest changes in human behavior, and the pace of change is accelerating," it said.

IPO Boutique Rating

Top Rating Research and advisory firm IPO Boutique is giving the BigCommerce IPO its highest rating of 5. It says the offering is "many times oversubscribed," suggesting strong demand for shares by institutional investors.

"This company's financials are very good with strong growth and improving gross margins," IPO Boutique said in a note to clients.

From The TradersCommunity Research Desk

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