The SiteMinder Ord Shs (ASX: SDR) share price is charging higher again on Tuesday.
At one stage today, the leading open hotel commerce platform provider's shares were up a further 9% to a record high of $7.65.
When the SiteMinder share price reached that level, it was up a whopping 51% from Monday's IPO listing price.
Image source: Getty Images
Why is the SiteMinder share price rocketing higher?
Investors have been scrambling to buy SiteMinder shares since they landed on the ASX boards yesterday after the company raised $627 million via an oversubscribed IPO.
This gave the company a market capitalisation of $1.36 billion at listing. Though, with the SiteMinder share price rocketing higher since then, its market capitalisation is now approximately $2 billion.
This means its shares are changing hands for approximately 19x June's annualised recurring revenue (ARR) of $104.9 million.
What is SiteMinder?
SiteMinder was founded in Australia in 2006, and is the world's leading open hotel commerce platform. It is trusted by more than 32,000 hotels, across 150 countries, to sell, market, manage and grow their business.
SiteMinder generated more than 100 million reservations worth over US$35 billion in revenue for hotels in the 12 months prior to the start of the pandemic.
Its customers are hotels and other accommodation providers, including vacation rentals, lodges, motels, and enterprise properties. Approximately 75% of SiteMinder's subscription base is small and medium-sized businesses, generating approximately 71% of FY 2021 subscription revenue.
The future
While SiteMinder has been growing at a strong rate in recent years, management believes its journey is only really getting started.
Commenting on the IPO, SiteMinder's CEO and Managing Director, Sankar Narayan, said: "In many ways, we're just getting started. We are very excited to have taken this step, which represents the next stage of the SiteMinder business and our ongoing evolution."
"The global hotel industry has experienced evolution like never before in recent times. The need for technology like SiteMinder's hotel commerce platform is of substantial relevance as hotels have had to digitally transform with haste, while adjusting to their customers' changing needs and behaviours."
This could make the SiteMinder share price one to watch in 2022. Particularly given the increasingly positive outlook for travel markets.
