Video game software developer Unity Software plans to go public on Friday, Sept. 18. The company could raise about $1.3 billion. The company will likely offer about 25 million shares priced at $52 per share. How can investors buy into the Unity stock IPO?
When is the Unity stock IPO date?
On Sept. 17, Unity priced its IPO above the previous estimates. The company plans to offer 25 million shares at $52 per share for total gross proceeds of about $1.3 billion. Also, the company has granted underwriters a 30-day option to buy an additional 3.75 million shares.
Initially, Unity priced the shares between $34 and $42. However, Unity raised the estimated price to between $44 and $48 on Sept. 16 due to interest in the IPO. Now, the company is valued at about $13.7 billion, according to a CNBC report.
Stock trading usually starts at 9:30 a.m. ET on the NYSE. However, trading is delayed for the pre-IPO stocks on their debut day based on supply and demand.
Where can you buy the Unity stock IPO?
Credit Suisse and Goldman Sachs are the lead underwriters for the deal. Usually, companies going public hire investment bankers or financial advisers to handle the details of the stock offering. However, Unity CEO John Riccitiello has taken stock pricing and allocation control from the underwriters, according to the CNBC report.
How to buy the Unity stock IPO Robinhood
Robinhood, allows its customers to purchase IPO shares on the debut day at 8:00 a.m. ET. Robinhood customers can only place limited orders, which doesn’t guarantee that they will be filled.
Should you buy the Unity stock IPO?
Unity is a video game development platform. The company’s software is used by game developers to create and operate interactive 3D content. The company's notable clients are Tencent, Ubisoft, Electronic Arts, and Take-Two Interactive. The company posted a net loss of $54.2 million for the first six months of 2020 compared to a net loss of $67.1 million the previous year. Unity's sales rose about 39 percent year-over-year to $351.3 million in the first six months of 2020.
According to a CNBC report, “The company said in its prospectus that it has 1.5 million monthly active creators and that developers using its software are seeing over 3 billion downloads a month.”
Unity joins the line of various software IPOs that have launched this week. Snowflake recorded the largest IPO for a software company ever. JFrog and Sumo Logic also launched this week. The stocks of all three companies surged significantly on their first trading days earlier this week. Snowflake’s shares more than doubled, JFrog rose about 50 percent, and Sumo Logic rose about 20 percent.