Twilio Announced Pricing of IPO, Shares Soar on the First Day Trading

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Twilio Inc. (NYSE: TWLO), a leading cloud communications platform company, announced on Wednesday the pricing of its initial public offering at a price of $15.00 per share. Twilio began trading today at the New York Stock Exchange, opened at $23.99, 60% higher than the IPO price, and up about 76% to $26.44 per share during early afternoon trading.

Twilio Inc., founded in 2008, has grown quickly by selling software to help firms communicate with clients via video, voice and sending messages, which made communications easier and more powerful. The company was headquartered in San Francisco, with other offices located in Hong Kong, London, Munich, New York City, Singapore, Tallinn, Bogotá, and Mountain View. Twilio has more than 500 employees now, and serves clients such as Uber, Nordstrom and OpenTable. For example, Nordstrom salespeople uses Twilio to chat with customers who are waiting for a specific product to arrive and OpenTable uses Twilio to send reservation notifications. Revenue of the company nearly doubled to $166.9 million in 2015, with a net loss of $35.5 million.

According to the statement of the company, the company’s public offering is of 10,000,000 shares of Class A common stock at a price of $15.00 per share, and all of the shares are offered by Twilio. Twilio also granted underwriters a 30-day option to purchase up to 1,500,000 additional shares of Class A common stock from Twilio at the IPO price. Goldman Sachs and J.P. Morgan Securities acted as joint book-running managers for the offerings and Allen & Company LLC, Pacific Crest Securities, a division of KeyBanc Capital Markets Inc., JMP Securities LLC, William Blair & Company, L.L.C., and Canaccord Genuity Inc. acted as co-managers. Twilio’s IPO is also the first U.S. venture-backed tech IPO in 2016.

The company said that the proceeds from the public offering is going to be used to invest in engineering and marketing, and also to expand its technology platform.

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