Next Big IPO Launch: Unity (U)

Unity has raised the appeal of its own imminent debut this morning on the heels of two IPOs selling beyond elevated ranges. Currently the well-known unicorn is expected to begin trading this Friday, pricing after Thursday’s bell.

If that happens, the company’s gaming platform expects to be worth between $44 and $48 per share, up from its preceding IPO price range of $34 to $42 per share it initially set.

It is not a surprise for Unity to raise its price range for its IPO, given that software companies have recently been on a good run. Just last night developer-focused tech was concerned with JFrog and data-focused cloud activity Snowflake each pricing their public debuts above elevated price intervals.

Unity will sell $1.20 billion in inventory at $48 a share and will be priced at about $12.6 billion. Unity is priced at about 17.1x revenue, considering its most recent quarter revenue ($184.3 million) and annualized run-rate ($737.4 million). (You can make the multiple larger by using a trailing income metric rather than an annualized run-rate figures, or lower it by using forward income estimates.)

When Snowflake and JFrog launch, we’ll have a better feeling of how hot the public markets are later today, but Unity’s upward price bodes well for all three businesses. Regardless of its final price, Unity investors are set to do well. The company last raised $125 million at a valuation of about $6.0 billion in mid-2019. In the deal, former shareholders would do much better.

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Jake Page
Investor of 4 years and Managing Editor of Money Midnight, a news outlet focused on highly profitable investment ideas and bold underground research.
Articles: 42

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