Airtasker (ASX:ART) share price rockets 78% after IPO

The Airtasker Limited (ASX:ART) share price is rocketing higher on Tuesday following the successful completion of its IPO this morning…

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The Airtasker Limited (ASX: ART) share price has hit the ASX boards at last on Tuesday morning following the successful completion of its initial public offering (IPO).

And what a start to life as a listing company it has had! At the time of writing, the shares of Australia’s leading marketplace for local services are trading at $1.16.

This means the Airtasker share price is up 78% from its listing price of 65 cents.

What is Airtasker?

Airtasker operates in the online labour marketplace industry for local services.

Its platform allows customers to easily search for relevant independent workers and provides independent workers with access to a wide base of potential customers. Its main focus is the local services segment of the labour services market. This includes everyday tasks such as handyman jobs, domestic cleaning, and business administration.

According to its prospectus, the total addressable market for local services in Australia was estimated to be $52 billion in 2019.

However, while Australia is its main market at present, the company operates in several other international markets. This includes Ireland, New Zealand, Singapore, the United Kingdom, and the United States.

Management notes that the aggregated total addressable market was estimated to be $591 billion in 2019.

The Airtasker IPO

Airtasker raised a total of $86.3 million through the issue of 23.1 million shares and the sale and transfer of 105,6 million shares at an issue price of $0.65 per share.

From these funds, $15 million will be received by Airtasker, which will be used for marketing, product development, and working capital.

The remaining $68.7 million will provide existing shareholders with an opportunity to realise all or part of their investment in Airtasker.

As a result of the above, Airtasker hits the ASX boards with 420.6 million shares outstanding.

Based on this and the latest Airtasker share price, this gives it a market capitalisation of almost $500 million.

Management comments

Airtasker’s CEO, Tim Fung, was very pleased with the success of the IPO.

He said: “We’ve been absolutely delighted by the response Airtasker received from institutional and retail investors in our IPO which was more than 5X oversubscribed. But an even more important signal is the demand we received from our Tasker community and our staff, who subscribed for shares more than 10X our initial expectations.”

“We have an incredible foundation to build from and we’re excited to be taking our new shareholders on the exciting journey to fulfill Airtasker’s mission: to empower people to realise the full value of their skills.”

Judging by the Airtasker share price performance today, investors appear just as positive as Mr Fung.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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