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The StubHub logo is seen at its headquarters in San Francisco.
Andrej Sokolow | Picture Alliance | Getty Images
StubHub, the online ticket marketplace, has priced its IPO at $23.50 per share, sources confirmed to CNBC on Tuesday. This pricing falls squarely within the midpoint of the expected range the company disclosed last week, valuing StubHub at approximately $8.6 billion.
The company announced the IPO pricing in a statement late Tuesday. Shares are slated to commence trading on the New York Stock Exchange (NYSE) on Wednesday under the ticker symbol “STUB.”
Founded in 2000 by Eric Baker and later acquired by eBay in 2007 for $310 million, StubHub represents a significant player in the event ticket resale industry. In a strategic move, Baker reacquired StubHub in 2020 for around $4 billion through Viagogo, his European-based ticket marketplace. This reunion positioned Baker to capitalize on the pent-up demand for live events following the pandemic.
StubHub’s journey to the public market has been protracted, undergoing several delays, including a postponement in April due to market volatility. However, the company refiled its prospectus in August, setting the stage for this week’s IPO.
The IPO market has shown signs of recovery after grappling with inflationary pressures and increasing interest rates. Klarna, the online “buy now, pay later” lender, recently made its NYSE debut after its own IPO was delayed earlier in the year. Several other high-profile companies including blockchain and design software firms have also experienced successful debuts in recent months, contributing to a renewed optimism in the market.
While the $23.50 pricing values StubHub at $8.6 billion, it is noteworthy that the top end of the initially proposed range would have resulted in a $9.2 billion valuation. Earlier reports even suggested StubHub was initially aiming for a $16.5 billion valuation, highlighting the dynamic nature of IPO valuations and the impact of market conditions.
The company’s refiled prospectus indicates that StubHub witnessed a 10% year-over-year increase in first-quarter revenue reaching $397.6 million, alongside operating income of $26.8 million. However, its net loss widened to $35.9 million from $29.7 million year prior. Investors will likely be scrutinizing StubHub’s path toward profitability as it navigates the competitive landscape of the online ticketing industry.
The success of StubHub’s IPO will undoubtedly be closely watched as a barometer of investor sentiment toward the event ticket marketplace. Factors such as the company’s ability to innovate its platform, manage competition, and achieve sustained profitability are crucial to its long-term success in the public market.
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