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Expensify Jumps 40% in Debut As Hot IPOs Rule the Day

Expensify had priced its initial public offering at $27 per share but was trading near $40 per share Wednesday afternoon.
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Expensify, a payments app that simplifies payment systems for companies, jumped more than 40% in its debut on the Nasdaq Wednesday. 

The Portland-based company announced it is pricing shares of its initial public offering at $27. shares jumped 43.67% to $38.60 Wednesday afternoon following an opening trade of $37.49.  

Expensify will offer 2.6 million shares of its Class A common stock and current stockholders are putting up another 7.1 million shares as part of the offering. 

The company had revenue of $55.65 million in 2020 leading to a net loss of 6 cents per share. In the first six months of 2021 Expensify reported revenue of $49.45 million with a profit of 13 cents per share.

Gross proceeds from the offering are expected to be about $70.4 million. Shareholders are offering underwriters a 30-day option to purchase up to 1.46 million additional shares.

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J.P. Morgan, Citigroup and Bank of America are acting as joint lead bookrunners for the offering. Piper Sandler, JMP and Loop Capital are acting as co-managers. 

The IPO market was ripe Wednesday as electric vehicle maker Rivian also jumped in the biggest IPO since Facebook FB debuted in 2012. 

Rivian stock began trading at $106, up 36% from its offering price of $78 a share. The all-electric truck and SUV maker had filed to offer 135 million shares at between $57 and $62.

It boosted the price range to between $72 and $74 a share on Nov. 5 and boosted the number of shares on offer to 153 million, according to a statement late Tuesday.

While no Rivian trucks are currently on the roads, the company said in its prospectus that it has a backlog of 55,400 pre-orders for its R1T and R1S electric vehicles.