how to buy asana stock ipo direct listing
Source: istock, Asana

How Investors Can Buy Into the Asana Stock IPO


Sep. 24 2020, Updated 9:45 a.m. ET

Asana plans to go public on or around Sept. 30. The workplace management software maker is pursuing a direct listing on the NYSE under the ticker symbol "ASAN." How can you buy into the Asana stock IPO?

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When is Asana stock's direct listing date?

Asana is set to go public by the end of September in a direct listing that will forgo raising capital. In a direct listing, the company going public doesn’t issue new shares to raise capital. Instead, the company sells some of its existing shares. The existing stockholders would resell up to 30 million shares. There aren't any underwriters to the Asana IPO. However, JPMorgan Chase, Morgan Stanley, Credit Suisse, and Jefferies Financial are acting as financial advisors on the direct listing.

asana ipo
Source: Asana
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Asana's stock listing will likely follow Palantir Technologies' listing scheduled on Sept. 29. Only two other major technology companies, Spotify and Slack, went public through a direct listing.

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Where can you buy the Asana stock IPO?

You can buy Asana stock through online brokers like Robinhood, TD Ameritrade, Webull, Vanguard, and SoFi Invest. If you’re a beginner, you need to have a stock trading account to buy or sell stocks. After you have finalized your broker, you can complete the application process and fund your brokerage account. Then you can find Asana stock by searching for its ticker symbol or name and start buying.

How to buy Asana stock on Robinhood

If you already have a trading account with Robinhood, you can find Asana stock and start buying. If you’re a beginner, you have to open a Robinhood trading account first. The online discount broker doesn’t charge fees to execute trades.

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Should you buy the Asana stock IPO?

Asana was founded in 2008 by Facebook co-founder Dustin Moskovitz. Asana specializes in work collaboration software, which competes with Atlassian's Jira.

Investors should consider buying into the Asana stock IPO based on the company's strong growth. Asana appears to be a winner in the work-from-home era. According to a Livemint report, “The company said during a live broadcast from its San Francisco office on Thursday that the current environment will help bring awareness to its software and accelerate its adoption as businesses get more comfortable with employees working remotely.”

Asana’s revenue jumped 85.8 percent YoY (year-over-year) to $142.6 million in fiscal 2020, which ended on Jan. 31. The company posted a net loss of $118.6 million in fiscal 2020 compared to $50.9 million in fiscal 2019. The net loss doubled in fiscal 2020 as research, sales, and marketing expenses increased. The company’s net revenue jumped 63.3 percent in the first six months of fiscal 2021 to $99.7 million, while its net loss more than doubled in the first six months of fiscal 2021 to $76.9 million.


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