Shares of Amplitude Inc. popped significantly above their reference price Tuesday after the software company made its public debut through a direct listing.
Amplitude AMPL, +56.57% shares opened at $50, 43% above the $35 reference price set by the Nasdaq, and then headed higher from there to a recent $54.17. Because the company didn’t hold a traditional initial public offering, it didn’t raise money in the process of going public.
Chief Executive Spenser Skates called traditional IPOs “antiquated” in an interview with MarketWatch, arguing that companies who go that route often end up underpricing their shares. Skates said that Amplitude is “very well set up for the future” with the cash it currently has, which can be used for future investments in the business.
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