On September 18, 2021 — GitLab, the open DevOps platform, which was valued at $6B in a secondary share sale late last year, filed its US Initial Public Offering (IPO). GitLab originally planned an IPO on Nov. 18, 2020. In May 2020, the exit was postponed due to a pandemic. In December 2020, the platform's valuation reached $6B.
GitLab creates online tools to reduce the software development cycle by allowing teams to collaborate and work together. The platform is going to compete with Atlassian and GitHub, which Microsoft acquired.
- Detailed instructions how to participate in GitLab (pre-IPO, offering price) see below👇
What is an IPO and how it works
IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.
To go public, a company must have a track record of growth and other favorable results and hire an investment bank to come in and underwrite the IPO. The underwriters also performed due diligence and verified financial information and business model.
Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company with underwriters' help sets an initial price and date for the stock to begin trading on a stock exchange.
Company Profile and Financial Indicators before GitLab IPO
In 2015, such giants as IBM, Alibaba Group, and SpaceX invested $1.50M into the company, mainly through Y Combinator. Additional funding rounds over the next five years increased the total investment amount to $434M. The latest major round occurred in September 2019, when the company raised $268M.
GitLab technology is used by such renowned brands as Siemens, Ticketmaster, and Nvidia. Many large open-source projects, such as GNOME, are also based on GitLab.
GitLab's CEO reports the annual earnings reached $100M+, largely due to freemium, a monetization model used by the company (although a subscription-based model exists as well). Sometime before, GitLab also reported its annual profit gain (YoY) at +143%.
One of the unique features of GitLab is its independence from external factors, such as the pandemic, because all of its 1,300 employees from 67 countries have been working exclusively remotely since the company's inception.
How to Buy GitLab Stocks Before the IPO (Offering Price)
In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.
Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in GitLab IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy GitLab shares when the company goes public via a commission-free trading app like eToro.
🚨 Detailed Instructions How to Participate in the GitLab IPO before public trading:
Below we share the instruction how to participate in the approaching GitLab IPO using Freedom Finance (Freedom24 platform). This marketplace is chosen as an example because GitLab is already listed there.
* Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account — you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
- Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- 💡 Tip: It's recommended to deposit your account in advance. Often the exact IPO date is undefined until the last day. You may have a short notice for participation and account deposits also takes time for processing. Also, sometimes Freedom sends last-minute IPO offer when you have 2 hours to participate.
- Submit a request to participate in the IPO — when applications are open select GitLab and click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
- Wait for allocation — The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
- Start of trading — With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will start — a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
- Closing your trade — At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion — leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the ‘Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.
Is investing in IPOs profitable?
Not always. The average return at the end of the lock-up period is 72%, past IPOs data.
When is the GitLab IPO date?
GitLab's IPO date is October 12, 2021.
What is GitLab IPO price range?
GitLab IPO price range is $55 - 60 per share.
How to Invest in GitLab after the IPO date (opening price)?
After the IPO you can buy GitLab stocks via Freedom24 or eToro on the first trading day.
In what currency GitLab IPO and post-IPO shares will be traded?
The GitLab IPO and stock trading currency will be USD.
If you have funds in another currency the cheapest way to convert your currency is to use the mid-market rate (that’s the one you’ll find on Google) which can be done via a fintech service like Wise. Banks may add hidden markups to their exchange rates - charging you more without your knowledge. And if they have a fee, they charge you twice. Wise never hides fees in the exchange rate.
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What is the GitLab (stock symbol)
The stock ticker for Duolingo will be GTLB
GitLab Prospectus
GitLab Registration Statement on Form S-1
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