Squarespace IPO meets with a rough receptionSquarespace plunges by over a third in its market debut as it lands in choppy waters.
The website hosting services company saw its valuation plunge 13% from the reference price on its first day of trading, as a broader market sell-off took place around it. Shares opened on May 19 at $48 each after the NYSE had set a reference price of $50, and its closing price of $43.7 gave the company a market cap of less than $6 billion – a bit of a kick in the guts after the last funding round in March, which gave the company a valuation of $10 billion.
The U.S. stock market has been on a tear this year, having raised well over $150 billion in IPOs already, comfortably on track to beat last year's $167 million. Recently though, fears of inflation have hounded investors, pushing them to abandon high-growth tech stocks, which has led to cool-off in capital markets and a less-than-friendly environment for Squarespace to make its grand entrance into stock market society.
However, the company recovered the following day, jumping double digits on May 20, so it things might be looking up.