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Workplace collaboration firm monday.com eyes $6 billion valuation in Nasdaq IPO

Valuation would be second-highest ever for IPO of Israeli tech firm, after Playtika, which listed shares on Nasdaq this year at $13 billion valuation, according to IVC data

Shoshanna Solomon is The Times of Israel's Startups and Business reporter

The monday.com team, June 2020 (Shlomi Yossef)
The monday.com team, June 2020 (Shlomi Yossef)

Israel’s monday.com, a developer of a workplace collaboration and management platform, said Tuesday it is starting a roadshow for an initial public offering of shares on the Nasdaq in the US at a valuation of more than $6 billion.

The company said in a statement it plans to sell 3.7 million ordinary shares at a price in the range of $125 to $140 a share, raising up to some $518 million.

In addition, monday.com expects to grant the underwriters a 30-day option to purchase up to an additional 370,000 ordinary shares at the initial public offering price, deducting underwriting discounts and commissions.

Alongside the shares sold in the public offering, Salesforce Ventures LLC and Zoom Video Communications Inc. have agreed to buy $75 million each of monday.com’s shares in a private placement, the statement said.

Roy Mann, left and Eran Zinman, the co-founders of monday.com (Shlomi Yossef)

The public offering of shares would be at the second highest valuation ever for an Israeli tech firm via an IPO process, according to IVC Research Center, which tracks the sector. Playtika, a mobile gaming firm based in Herzliya, held an IPO of shares on the Nasdaq in January this year at a valuation of $13 billion. Playtika was acquired in 2016 by a Chinese consortium, thus making it technically not an Israeli firm, but it is listed in IVC’s data because of its Israeli founders and its continued activities in Israel.

Mobileye, a Jerusalem based developer of self-driving technologies, held an initial public offering of shares in 2014 at a valuation of $5.3 billion. Intel in 2017 acquired Mobileye for a whopping $15.3 billion and delisted its shares from the New York Stock Exchange.

monday.com in May made public its plans to list shares in an initial public offering on the Nasdaq in the US, without disclosing how many shares it is going to sell.

According to a Bloomberg report in May, monday.com saw its valuation jump from $1.9 billion to $2.7 billion during the pandemic, as employees who moved toward working from home due to the COVID-19 pandemic turned to the firm’s platform to help maintain productivity, ensure accountability and avoid communication breakdown.

The Tel Aviv-based company employed 799 workers as of the end of March. It was founded in 2012 by Roy Mann and Eran Zinman.

monday.com has raised some $234.1 million to date, according to Start-Up Nation Central. Investors include Silicon Valley-based VC fund Sapphire Ventures, Hamilton Lane, HarbourVest Partners, ION Crossover Partners, Vintage Investment Partners, Genesis Partners and Entrée Capital, Israeli VCs.

In a prospectus with the US Securities and Exchange Commission filed on May 17, the firm said that as of end March 2021, it served 127,974 customers in 200 industries in more than 190 countries.

The cloud-based software developed by the company provides customers with “modular building blocks” that allows them to create their own applications and work management tools.

Annual revenue totaled $616.1 million in December 2020, up 106% from 2019. First quarter revenue surged 85% to $59 million.

The firm, however, is still losing money. Net loss in 2020 widened to $152.2 million from $91.6 million in 2019, and to $39 million in the first quarter of the year compared to some $20 million in the same quarter a year earlier. Operating expenses in 2020 surged to $289.2 million from some $159 million in 2019.

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