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DocuSign IPO Prices Higher Than Expected

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The DocuSign IPO has been a smash hit so far as the stock's price is higher than anticipated.

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The company - which focuses on creating digital signatures for signing documents and other document organization tools - priced its IPO Thursday evening at around $29 per share, which netted the company around $629 million. The price was better than what DocuSign was expecting initially in its IPO.

The original proposed price range was between $24 to $26 and was later raised to $26 to $28, giving the company a valuation of $4.4 billion on its IPO, above the $3 billion the company had raised for its last private round. DocuSign has been around since 2003 and the company has raised over $500 million over these 15 years.

In the fiscal year ending in 2018, the company brought in $518.5 million in revenue, up from the year-ago revenue of $381.5 million and $250.5 million the year before. Losses for the year tallied up to $52.3 million, less than half of the year-ago's losses of $115.4 million and below the $122.6 million from fiscal 2016.

DocuSign's IPO filing reveals that the company's largest shareholder is Sigma Partners with 12.9% of the company, while Ignition Partners owns 11.7% and Frazier Technology Ventures owns 7.2%. The company's competition includes HelloSign and Adobe Sign, but DocuSign has inked deals with the likes of T-Mobile Us Inc (NASDAQ: TMUS ), Salesforce.com, inc. (NYSE: CRM ) and Morgan Stanley (NYSE: MS ).

The company's business model is tiered as companies pay more depending on how many services they want.

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The post DocuSign IPO Prices Higher Than Expected appeared first on InvestorPlace .

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


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

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