Investors took a cautious approach to transit software startup Via’s IPO on Friday, with shares opening below the company’s IPO price before recovering at end the day slightly higher.
The company, which initially filed confidentially for IPO in July, priced its IPO at $46 per share, raising $492.9 million. Those shares slipped to $44 when the stock began trading Friday afternoon, and then inched back into the green to finish at just over $49. The modest gain values Via at roughly $3.9 billion at the close of its first trading day.
Via raised about $328 million in its IPO, while existing shareholders sold another $164 million worth of stock, bringing the total deal size to nearly $493 million.
“We’re extremely pleased with the result of today’s IPO, and we think it is a testament to the value and durability of the company,” Via CEO Damiel Ramot said. “We are grateful for the feedback and support from our team, partners, and investors who made this milestone possible.”
Via initially launched in 2012 by deploying Via-branded shuttles that users could hail. Over time, Via improved its on-demand routing algorithm, which uses real-time data to route microtransit shuttles to where they’re needed most. Now, that tech is its core business, which it sells to 689 cities and transit agencies to power their microtransit.
Ramot told TechCrunch the company would use the proceeds to invest in growth, sales, and marketing. And maybe even an acquisition, in the future.
“We’re not necessarily looking to raise funds to drive operations,” Ramot said. “There may be an opportunity for us to use the proceeds and the currency of a public stock to make some interesting acquisitions like we did with Remix and CityMapper.”
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