US Markets

Asana shares jump nearly 29% in NYSE debut

Shares of workplace software maker Asana Inc surged nearly 29% in their debut on the New York Stock Exchange, marking a strong opening for the first of two notable direct listings on Wednesday.

Adds details and background on Asana's direct listing

Sept 30 (Reuters) - Shares of workplace software maker Asana Inc ASAN.N surged nearly 29% in their debut on the New York Stock Exchange, marking a strong opening for the first of two notable direct listings on Wednesday.

Asana's stock opened at $27 per share, giving it a valuation of $4.17 billion. The NYSE had set a reference price of $21 per share. In early trade, the company's shares were up nearly 40%.

Asana will be joined later in the day by Palantir Technologies, another company backed by Silicon Valley billionaire Peter Thiel that will debut via a direct listing on the NYSE.

At 1.29 p.m. ET, Palantir was indicated to open between $9.95 and $10.05 a share, compared to its reference price of $7.25.

Existing investors can sell their shares directly to the market in a direct listing. Unlike an IPO, companies are not allowed to raise capital.

Music-streaming business Spotify Technology SA SPOT.N went public in 2018 via a direct listing and communications platform Slack Technologies Inc WORK.N followed suit in 2019.

Asana was founded in 2008 by Facebook Inc FB.O co-founder Dustin Moskovitz and a former Google and Facebook engineer, Justin Rosenstein.

Prior to its public debut, at the top end of its price range, Asana traded at $28 per share in the private market in August, with the shares priced at $14.24 apiece at the lower end. The weighted average price was $25.11.

The company reported revenue of $99.7 million for the six months ended July 31, up 63% from a year earlier. Its net loss widened to $76.9 million from $30.54 million, according to its filing.

Morgan Stanley & Co LLC, J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Jefferies LLC served as financial advisers for the listing.

(Reporting by Madhvi Pokhriyal in Bengaluru; Editing by Maju Samuel)

((Madhvi.Pokhriyal@thomsonreuters.com; Outside the U.S. + 9620394604;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ASAN SPOT FB NTST SPG MAC

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More