Update 10:54 EST: Etsy just shot up to $34 per share, the company’s shares have more than doubled since the company priced itself.
Update 10:49 EST: Etsy Has officially opened at $31 per share, almost 100% over the price the company priced the IPO at yesterday
Update 10:42 EST: All indications are that Etsy is going to open between $30.75 and $32. As that range gets tighter the first trade gets closer, so with that spread the open is going to happen soon.
Update 10:15 EST: An opening price that far above the level the company priced its IPO at would be mean that Etsy and the companies that have helped it go public, have badly misvalued the company the markets reaction to it.
Update 10:12 EST: Seeking Alpha is reporting that Etsy is indicated to open at $33, more than double the price the deal was made for. We’ll see how correct that is once the first trade is made. that should happen in the next 30 minutes.
Update 10:00 EST: Nasdaq helped Etsy light up Times Square right after the company rang the bell on Wall Street this morning.
Update 09:30 EST: Etsy has just rang the bell to mark the opening of the market on Wall Street.
— Mɐx Bulger (@maxbulger) April 16, 2015
When the market opens at 9:30 in New York, shares in Etsy Inc (NASDAQ:ETSY) will go on sale for the first time. The company priced its initial public offering at $16 per share on Wednesday evening. That will give it a valuation of $1.8 billion in total, nothing on the other public ecommerce concerns.
Etsy Inc (NASDAQ:ETSY) is a seller of various handcrafted objects and its claim to fame is in its support for the creativity of ordinary person with extraordinary skills in their craft. This post will continue to be updated through the day as the success, or failure of Etsy’s IPO becomes apparent.
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Etsy goes public
$195.6 million was the entirety of Etsy’s revenue last year, making the company’s $1.8 billion valuation an astonishing multiple of its total sales. That number increased by more than 50% since the year before, however, giving traders something to look forward to, and a possible reason to buy into the stock at that inflated level.
The $16 valuation is at the very top of the range that Etsy Inc. (NASDAQ:ETSY) had applied to SEC to sell in its IPO. The company is still unprofitable, making it a risky bet for traders, but after years of internet IPOs they have to be aware of the risks already.
Etsy gets IPO go ahead
Today at the open of the market the maker who are helping Etsy make its debut will sell their tranches of shares to the assorted banks and brokers looking to get their hands on the stock for their clients. Once that process has been completed the company’s price for the day will be set, and active trading will begin to flourish.
Tech IPOs have been a mixed bag in recent years but on the first day of trading they have usually gone up. This is due to a number of factors including hype, and support from the investment banks carrying out the transaction.