Insight-Backed WalkMe Falls in Debut after $287 Million IPO

Digital platform provider WalkMe Ltd. fell 7.1% in its trading debut after a $287 million initial public offering.

WalkMe, backed by Insight Venture Partners, initially rose as much as 2.1% on Wednesday from its $31 IPO price. The shares closed at $28.81 in New York trading, giving the company a market value of about $2.4 billion. Diluted to include employee stock options, WalkMe’s value exceeds $2.8 billion. The company was valued at $1.9 billion in a 2019 funding round, according to data provider PitchBook.

Tel Aviv-based WalkMe sold 9.25 million shares after marketing them for $29 to $32.

Out of the 29 other software companies debuting on U.S. exchanges this year, eight fell on their first day, according to data compiled by Bloomberg. WalkMe still fared better than Oscar Health Inc., which sunk 10.8% in its debut, or AppLovin Corp. with an 18.5% decline.

WalkMe’s listing is also the 10th by an Israel-based firm in the U.S. this year, the data show.

“Israeli companies are shooting for the stars,” WalkMe co-founder and Chief Executive Officer Dan Adika said in an interview. He expects to see “a lot more” Israeli tech companies going public in the next six months, a result of investments in the country’s startups.

Last year, WalkMe had a net loss of $45 million on revenue of $148 million, according to its filings with the U.S. Securities and Exchange Commission. That compared with a loss of $50 million on revenue of $105 million a year earlier.

Insight will remain WalkMe’s biggest shareholder after the IPO with a 28% stake, according to the filings.

WalkMe’s offering was led by Morgan Stanley, Goldman Sachs Group Inc. and Citigroup Inc. Its shares are trading on the Nasdaq Global Select Market under the symbol WKME.

©2021 Bloomberg L.P.

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