Data analytics startup Amplitude made its direct trading debut on the New York stock exchange on Tuesday, with shares beginning the day trading at $50 on Nasdaq. As is the case with other direct listings, Amplitude will not issue new shares at a set price. Instead, shareholders will have the power to sell their stock based on demand.
By 12:25 PM New York time, Amplitude shares were up by 7.1% or $53.57, pushing the company’s value up to $5.5 billion. While Nasdaq assigned a reference price of $35 per share, this price is seen merely as a guide rather than a final sale price, contrary to what is usually the case with a standard initial public offering.
To date, Amplitude is the latest in a series of firms in the technology sector that have made the leap to go public through direct listings this year. Other companies include project management software developer Asana Inc, cryptocurrency exchange Coinbase Global Inc, and online game maker Roblox Corp.
Founded in 2012, Amplitude is based in San Francisco, California. The company works alongside the likes of Burger King, Ford Motor Co, and Gap Inc to help them optimize their product offerings and enhance customer relations.
