AutoStore Is Norway’s Biggest IPO in the Last 20 Years
AutoStore, one the biggest warehouse robotic companies in the world, had its IPO on Oct. 20.
Oct. 20 2021, Published 2:01 p.m. ET
Robotics company AutoStore made history in Norway on Oct. 20. It had the country’s biggest IPO in the last 20 years. The IPO raised 2.7 billion Norwegian kroner ($323 million), which gave AutoStore a valuation of 103.5 billion kroner ($12.4 billion). The shares were priced at 31 kroner ($3.72), which was in the high range of where the company was targeting to price them. The IPO's huge success has left people wondering how they can buy AutoStore shares.
The last company to have a public listing valuation as high as AutoStore’s was Equinor—an energy company that was valued at 151 billion kroner ($18.1 billion) at the time of its IPO. The warehouse robotics company plans to use the money raised in the IPO to pay off debts. AutoStore provides ASRS (automated storage and retrieval systems) that utilize robots to simplify and speed up the process of packaging in warehouse environments.
How AutoStore has revolutionized the warehouse industry.
AutoStore is one of the most recognized companies in the world when it comes to warehousing. Its warehouse technology makes storing goods easy. AutoStore has allowed various global brands to save on storage spacing, time, and staff. AutoStore uses a combination of software and hardware to provide a variety of solutions for warehouses, including its unique cube storage system.
AutoStore’s cube storage automation system stacks packages on top of each other in a cube-like structure. The system works extremely fast. It can stack and grab items with ease. The storage structure's ergonomic build can be used in any shape of a warehouse, as long as there's a flat surface. Companies have been looking to acquire smaller warehouses around the world so that they have more facilities closer to consumers for faster shipping speeds.
How AutoStore's cube automation could help smaller warehouses
The design of the cube storage automation allows for it to be utilized in these smaller warehouses. In September 2020, it was reported that Amazon plans to open over 1,000 small delivery warehouses in various U.S. suburban areas. The reasoning behind this is to speed up online orders for consumers.
The abundance of small hubs will give consumers a greater chance of receiving same-day deliveries and other fast shipping speeds. This is where AutoStore’s cube automation could be a great fit for these smaller locations.
Walmart is another company that will utilize smaller packaging facilities. In January, Walmart announced that it plans to install mini-warehouses in multiple stores across the country. The retail giant wants to build these facilities inside of its stores or nearby them. The mini-warehouses will be 20,000–30,000 square feet. It also wants the majority of these facilities to be operated by robots.
Similar to Amazon and other major retailers, Walmart wants to speed up its delivery production for online orders. Walmart Plus is a fairly new delivery service that the company has offered. The service would benefit from the increase in smaller warehouse locations and faster delivery speeds.
Where to buy AutoStore stock.
Currently, Americans aren't able to purchase shares of the warehouse robotics company. For those who are Norway residents, you can purchase AutoStore (AUTO.OL) shares on the Euronext Oslo Stock Exchange with your appropriate broker. The stock’s prices increased by over 3 percent on Oct. 20.
