The Airtasker Ltd (ASX: ART) share price is on the rebound today, currently climbing 6.3% higher to $1.435. This comes after the company witnessed a heavy decline yesterday with some investors keen to take a quick profit.
With no news out of the company today, let's take a look back at its successful initial public offering (IPO).
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Quick take on Airtasker
Established in 2012, Airtasker is an online marketplace that allows users to outsource everyday tasks to people who are seeking work. Jobs can range from home cleaning, office admin and handyman work to photography, computer and IT support and more.
Airtasker makes its money from a service fee that is deducted from the agreed offer price of the services.
Successful IPO
While it's well documented that IPOs can be hit and miss, the surging Airtasker share price has exceeded investor expectations, tripling in value in its first two days of trade.
Before officially listing on the ASX on Tuesday this week, the company was hoping to raise $83.7 million to accelerate its growth strategy. The offer saw the issue of 23.1 million new shares and 105.6 million existing shares for sale at 65 cents apiece.
On the day of listing, Airtasker revealed it was more than 5 times oversubscribed by institutional and retail investors. Furthermore, its Tasker community and staff subscribed more than 10 times the initial offering. The average Airtasker staff member participating in the IPO had an average investment of $22,400.
The positive take up of the offer came on the back of the company's robust demand for its services during COVID-19. Airtasker stated that all metrics across its business are continuing to perform and it expects to either meet or exceed its prospectus forecast. FY21 revenue is targeted to be $24.5 million, with gross marketplace volume (GMV) of $143.7 million.
Airtasker share price summary
Since its IPO listing on Tuesday, the Airtasker share price has gone from strength to strength, accelerating by more than 120%. The company's shares reach an all-time high of $1.965 yesterday before retreating to their current level.
On valuation grounds, Airtasker presides a market capitalisation of roughly $573 million, with close to 393 million shares outstanding.
