Credit: Shutterstock photoAtlassian TEAM , the maker of enterprise-level workplace software such as JIRA and Hipchat, held its IPO today. After pricing its initial offering at $21 per share, well above its original range, shares of Atlassian opened even higher at $27.48. At the closing bell, Atlassian was up over 30% on the day.
(Also read: 5 Things Investors Need to Know About Atlassian )
The company sold 22 million shares today, raising about $462 million. In its most recent private valuation, Atlassian's worth was an estimated $3 billion. Following today's activity, Atlassian's valuation is over $5.5 billion. Its founders Scott Farquhar and Mike Cannon-Brooks, who still own 66% of the company, saw their fortunes grow by over $500 million.
Atlassian's success thus far is in stark contrast to the otherwise fizzling tech IPO market. The most recent example, Square SQ , lost nearly half of its value after a lower-than-expected initial price.
Whether this success will continue in the long-term remains to be seen, but Atlassian came to market with a lot of advantages. For one, the company has been profitable for the last ten years, which is impressive considering that many tech companies remain in the red for years after their IPOs.
Besides its profitability, Atlassian is unique in its approach to business. Unlike many other enterprise software companies, Atlassian does not have a traditional sales staff. Instead, its lists all of its product information, pricing, training material, and support requests directly on its website. This has saved the company a considerable amount of money throughout the years.
Companies with fundamentals this solid are a dime a dozen, so its no surprise that Atlassian had a successful first day. Investors should definitely keep their eyes on this stock going forward.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
