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Finance

And the Price of the Last Big Tech IPO of 2015 Is…

By
Dan Primack
Dan Primack
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By
Dan Primack
Dan Primack
Down Arrow Button Icon
December 9, 2015, 5:29 PM ET
Atlassian All Hands April 2015
From left to right: Atlassian co-founders and co-CEOs Scott Farquhar and Mike Cannon-Brooks; president Jay SimonsPhotograph by Aundray Cheam

Atlassian, maker of cloud-based workplace collaboration software, on Wednesday evening priced its initial public offering at $21 per share.

That was above Atlassian’s proposed $19 to $20 per share offering range, which had been increased from an initial range of $16.50 to $18.50 per share.

At $21 per share, Atlassian raised $462 million at an initial market capitalization of nearly $4.38 billion (fully-diluted value would be $5.53 billion). It will begin trading Thursday morning on the NASDAQ under ticker symbol TEAM, while Goldman Sachs (GS) and Morgan Stanley (MS) served as lead IPO underwriters.

The Australian company is a so-called unicorn in that it was valued at above $1 billion by private investors. But it is very different from most of its cohort.

For starters, Atlassian is not based in Silicon Valley. Second, it has been profitable for each of its past 10 fiscal years—most recently reporting $6.8 million of net income on $319.5 million in revenue for the year ending June 30, 2015. Finally, Atlassian never raised traditional venture capital. Instead, it bootstrapped and later participated in a handful of secondary transactions through which Atlassian insiders sold stock without the company itself adding new working capital.

Atlassian (TEAM) is expected to be the final tech IPO of 2015, and is only the fourth “unicorn” to go public this year. The others were Box (BOX), Pure Storage (PSTG) and Square (SQ).

The company’s products include JIRA (team planning and product management), Confluence (team content creation and sharing), Hipchat (team messaging) and Bitbucket (team code sharing and management).

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About the Author
By Dan Primack
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