StubHub Targets Up to $9.2 Billion Valuation in IPO
StubHub, the prominent ticket resale marketplace, has filed for an initial public offering (IPO) aiming to raise approximately $851 million. The company plans to price its shares between $22 and $25, which could value the firm at up to $9.2 billion, according to a filing submitted on Monday.
The offering will consist of over 34 million shares and StubHub intends to list on the New York Stock Exchange under the ticker symbol “STUB.” This move marks the company’s renewed attempt to go public after previously delaying its IPO amid market volatility.
IPO Delays Amid Market Uncertainty
StubHub initially paused its IPO process in April 2024, a decision influenced by stock market instability following President Donald Trump’s tariff announcements. The company had also considered an IPO in 2023 but postponed it in July due to a cooling IPO market environment.
Recently, the IPO market has shown signs of recovery, with notable listings including cryptocurrency exchange Bullish, design software company Figma, and crypto firm Circle. Other companies such as Klarna and Gemini are also preparing for their public offerings.
Financial Performance and Company History
In its updated IPO prospectus filed last month, StubHub reported a 10% increase in first-quarter revenue year-over-year, reaching $397.6 million. Operating income for the period was $26.8 million. However, the company’s net loss expanded to $35.9 million compared to $29.7 million the previous year, reflecting ongoing challenges.
Founded in 2000, StubHub has been a significant player in the ticketing industry. It was acquired by eBay in 2007 for $310 million but was repurchased in 2020 by its co-founder Eric Baker through Viagogo for $4 billion. Prior to initiating the IPO, StubHub had targeted a valuation of $16.5 billion, according to previous CNBC reports.
FinOracleAI — Market View
StubHub’s IPO signals confidence in recovering market conditions and the ticket resale sector’s growth potential. The company’s revenue growth is a positive indicator, but widening net losses highlight profitability challenges that investors should monitor. Market reception will likely depend on broader IPO market stability and consumer demand in live events.
Impact: neutral
