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The share price of DIY website developer Wix.com Ltd. (Nasdaq: WIX) rose 6.6% yesterday as the company’s market cap broke through the $1 billion barrier just six weeks after its IPO. In early trading on Nasdaq today, Wix’s share price was up 0.81% to $27.84, giving a market cap of $1.02 billion. This compares impressively with a share price $16.50 and market cap of $600 million at the IPO in early November. Thus the share price has risen 67%.
Founded in 2006, the company has developed a platform that makes it easy for users to set up their own site. Wix’s biggest shareholders are Mangrove Capital Partners and Bessemer Venture Partners who own 22% and 21% respectively. None of the funds with a stake in Wix decided to sell their holding during the IPO, and on paper the decision has paid off. Mangrove and Bessemer’s holdings are worth about $200 million each compared with $130 million at the IPO.
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The company’s founders decided to realize some of their holdings. CEO Avishai Abrahami, his brother, VP R&D Nadav Abrahami, and CTO Giora Kaplan each sold 484, 000 shares earning each of the three $8 million. This leaves Avishai Abrahami with a 3.6% stake worth $36 million and Nadav Abrahami and Kaplan each with a 3% stake worth $30 million.
The share price has outperformed the analysts’ forecasts. At the start of December Merrill Lynch set a target price of $23 per share, while Oppenheimer and Needham each set a target price of $25 per share.
Published by www.globes-online.com
