Elastic debuted under the thicker (ESTC) back in October 2018 as a part of the great IPO boom as numerous tech startups and companies decided to go public in 2018, while the trend is continuing even in 2019 as investors are waiting for companies such as Uber, Airbnb, Pinterest, Palantir, and more upcoming IPOs, to become publicly traded.
Elastic represented, at the time of its debut, a company that was categorized as unprofitable, but that has an amazing growth potential, thus evaluating Elastic IPO at 2.5 billion dollars.
The company raised 252 million dollars with their initial public offering as the share price went surging by 94%, closing the first trading session at 70$ per share back in October 2018.
How is Elastic (ESTC) Doing in the Market in 2019?
Elastic only managed to raise 100 million dollars as a privately-owned company, while the stakes increased by more than 50% with collecting 225 million dollars with their public offer.
Elastic, much like the search engine giant Google, has a focus on search-focused software and is operating as software-as-a-service company (SaaS), while SaaS sector is seeing increased attention among investors and consumers likewise, which is perhaps the reason why Elastic has had such a successful IPO in the first place despite the lack of current profitability.
The initial plan was to open the first trading session at the price per share between 33$ and 35$, however, the company went with the starting price above the planned values, starting IPO sale at 36$.
The shares soon spiked by the amazing 94% already by the end of the first trading session on October 4th, 2018, which provided ESTC with the price per share set at 70$.
Less than six months later, ESTC is seen in an upward trend at the beginning of the second quarter of 2019, trading at 82,90$ and heading to 83$ with the latest rise of 3.79%.