Skip to main content
Welcome to
super saver spring
offer ends april 20
save over $140
Sale ends in
$0.99
per week for 24 weeks
Welcome to
super saver spring
$0.99
per week for 24 weeks
save over $140
// //

Shares of Sequoia-backed startup Unity Software Inc. jumped 44.2 per cent in their debut on the New York Stock Exchange on Friday, signalling sustained demand for new stocks.

The company’s stock opened at US$75 a share, giving the firm a market value of US$19.75-billion.

The Silicon Valley startup on Thursday raised US$1.3-billion in its IPO, after pricing 25 million shares at US$52 apiece, much above its upwardly revised price range of US$44 to US$48 per share.

Story continues below advertisement

It is the second US$1-billion-plus U.S. software IPO this week to price above the targeted range after data warehouse company Snowflake Inc. raised more than US$3-billion in the largest U.S. listing so far this year.

Unity’s software platform is widely used by game developers, artists, architects and filmmakers to create, run and monetize interactive 3D content.

“The company’s [IPO] timing is good. Not only have U.S. market indexes returned to records, but one of Unity’s top competitors, Epic Games, is also challenging Apple in court,” said Michael Underhill, chief investment officer for Capital Innovations, which invests in IPOs.

Last year, more than half of the top 1,000 games in Apple’s App Store and Google’s Play Store were built using Unity’s software platform, Mr. Underhill added.

For Unity’s IPO, the lead underwriting banks, Goldman Sachs Group Inc. and Credit Suisse Group, used an online system to take indications of interest from investors, with the aim of getting a more accurate gauge of demand.

Orders for an IPO are typically made over the phone.

Investment firm Sequoia Capital is Unity’s largest shareholder with a 24.1-per-cent stake, while private equity company Silver Lake owns 18.2 per cent, according to a filing.

Story continues below advertisement

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies