Roku top tech IPO, up 68pc on debut
NEW YORK: Roku Inc’s trading debut has catapulted it among the biggest gainers for newly-listed technology and communications stocks as investors bet on the success of streaming video.
The shares closed at a high on its first day of trading at US$23.50 (RM99.23), up 68 per cent from its US$14-a-share initial public offering price.
That surpassed MuleSoft Inc’s first day rise in March, making Roku the top first-day climber of the year for a United States-listed technology company with an IPO bigger than US$50 million.
Investors bought US$219 million worth of Roku stock, with 15.7 million Roku shares selling for US$14 each. They were initially marketed for US$12 to US$14 apiece.
The company sold nine million shares, while its biggest investor, Menlo Ventures, sold six million.
Public market investors are angling for a piece of the maker of the best-selling video streaming device.
It’s a bet on customers continuing their cord cutting to watch more movies and shows beyond old-school cable subscriptions.
Roku’s first-day success on Thursday also reveals a continuing appetite for tech-related IPOs. Still, a strong debut hasn’t guaranteed continued gains for two of the year’s highest-profile listings. Snapchat owner Snap Inc, which had the second-best first day for a tech IPO this year, is trading 15 per cent below its US$17 offer price in March.
Online meal-kit delivery service Blue Apron Holdings Inc closed at US$5.59 a share on Thursday, 44 per cent below its June debut.
Roku makes devices and software that allow users to stream video onto their televisions from sources such as Netflix Inc, Amazon.com Inc and ESPN.
Roku was an early mover in what’s now a crowded market for home devices and streaming tools.