Huge IPO on Wall Street: Monday will start trading on Nasdaq at a value of $ 6.8 billion


by Ifi Reporter Category:Start Up Jun 10, 2021

The largest Israeli IPO on Wall Street is underway. Monday has completed its initial round of funding and will begin trading today in New York at a value of $ 6.8 billion. The IPO closed at $ 155 a share, above the original range, promising a $ 573 million raise for the company.
The stock is expected to be traded on NASDAQ under the symbol "MNDY". Monday is a work OS, through which organizations of all sizes can create the tools and processes they need to manage every aspect of their work.

Monday enables an efficient and intuitive way to manage teams, projects, business processes, complex operations and allows teams to excel in every aspect of their work. Monday has teams in Tel Aviv, New York, San Francisco, Miami, Chicago, London, Kiev and Sydney. The platform enables customization to suit any industry and is currently used by over 127,000 customers in over 200 industries in more than 190 countries.
To date, the title of the largest offering is reserved for Mobilai, which was issued for $ 5.3 billion in 2014 and sold three years later for $ 15 billion to Intel. Although Ironsource and Ituro have received higher value tags, these are not yet completed IPOs.
Monday, founded by Roi Mann (42) and Eran Zinman (38), who today serve as co-CEOs, has developed a project management platform in organizations. The product was launched in 2014 and since then the company has enjoyed rapid growth, with both 2019 and 2020. More than doubled its revenues. In 2020, revenues totaled $ 161.1 million. On Monday, it ended the first quarter of the year with revenues of $ 59 million, compared to $ 31.9 million in the corresponding quarter. $ 1 million on an annual basis in 2021.
Like the software companies that work on the SAAS model and sanctify growth, Monday also invests huge resources in marketing and sales. For her, exceptionally, this is an expense item that is greater than her income. In 2020, for example, this item amounted to $ 191.3 million and in the first quarter of the year to $ 63 million.
Against the backdrop of high expenses, the company is not yet generating cash and posted a loss of $ 152.2 million in 2020, after losing $ 91.6 million in 2019. Monday ended the first quarter of the year with a loss of $ 39 million. In the first quarter of 2021, it significantly reduced cash flow and negative cash flow from operations, shrinking to $ 600,000, compared to $ 5.1 million in the corresponding quarter.
The largest shareholder in Monday is the Insight Investment Fund, with 42.7% of the shares and Jeff Horning even serves on the company's board of directors. Roy Mann owns 15.3% of Monday shares worth about $ 800 million after the IPO. Laman also has a founding share, which gives him a veto on board votes on a wide range of issues: from mergers and acquisitions, capital and debt raising and strategy changes. Zinman holds 5.6% of the shares, so that after the IPO, the value of his holding in Monday will reach $ 300 million.
Following the IPO, a new billionaire was born in Israel in dollar terms - Roi Mann, one of the two founders of Monday, who owns 15.3% of the company's shares, which at their current value are worth $ 1 billion. Eran Zinman, the second co-founder, owns 5.6% of the shares, which are now worth almost $ 400 million.
Another major beneficiary of the offering is Avi Eyal's Enterprise Capital Fund, which was among the company's first investors. The fund has invested only $ 13 million over the years in Monday and its holding value following the offering is approaching $ 1 billion.
Both Salesforce and Zoom, two global giants that bought Monday shares in a private placement in parallel with the IPO, are already profiting from the investment. The two bought shares at $ 75 million each at a price of $ 132 per share which was the mid-range of $ 125-140 planned in the IPO. But unsurprisingly, the very announcement of the entry of Salesforce and Zoom to Monday gave the IPO a boost and contributed to an increase in demand and its closing price of $ 155. The main underwriters of the offering are Goldman Sachs and Gay. According to Morgan.



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