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Coding platform GitLab lifts IPO pricing range, eyes nearly US$10 billion valuation

Coding platform GitLab Inc is now targeting a valuation of US$10 billion in its U.S. listing after raising the price range for its initial public offering, as demand for high-growth companies stays robust despite recent stock market gyrations.

The company said on Tuesday it would look to sell its shares between US$66 and US$69 each, compared with an earlier range of US$55 and US$60 per share. The IPO will raise US$717.6 million at the top end of the new range.

GitLab's move is the latest sign that the IPO market in the United States has not lost steam even as global equities suffer from wild swings due to concerns over inflation and debt-laden Chinese property developer Evergrande.

While the volatility drove companies such as exercise equipment maker iFIT Health & Fitness Inc and AEON Biopharma to pull their offerings, U.S. IPOs have proved to be more resilient than those in Europe.

Including blank-check firms, 777 U.S. IPOs have raised a total of US$249.22 billion this year, according to Dealogic data.

Seven-year-old GitLab creates online tools to reduce the software development cycle time - the duration between a task being assigned to a developer and its completion.

The company was started as an open-source project in 2011 by co-founder Dmitriy Zaporozhets in his house in Ukraine and counts industry leaders such as Nvidia Corp, Siemens AG and Goldman Sachs among its customers.

Khosla Ventures-backed GitLab operates on a fully remote working model that allows the headquarter-less company's 1,350 employees to work from more than 65 countries.

Goldman Sachs & Co, J.P. Morgan and BofA Securities are the lead underwriters for the offering.

(Reporting by Niket Nishant in Bengaluru; Editing by Aditya Soni)

Source: Reuters


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