MyDeal (ASX:MYD) share price rockets 120% higher following IPO

The MyDeal.com.au Limited (ASX:MYD) share price is rocketing higher following the completion of its IPO. Here's what you need to know…

| More on:
Rocket launching into space

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The MyDeal.com.au Limited (ASX: MYD) share price has had a sensational start to life on the Australian share market.

The online retail marketplace provider's shares rocketed 120% higher than its IPO price of $1.00 to $2.20 this morning.

The MyDeal share price has since pulled back a touch but is still up 83% for the day to $1.83.

The MyDeal IPO.

MyDeal hit the ASX boards this morning after successfully completing its initial public offering that raised $40 million at $1.00 per share.

The $40 million comprises $35 million for the company and $5 million for certain existing shareholders.

Based on this and its existing shares, this gave the company a market capitalisation of $258.8 million. Though, with its shares now changing hands for $1.83, MyDeal has a market capitalisation of $475 million.

What will it spend the proceeds on?

According to the release, the company intends to use the proceeds from the IPO to drive future growth.

This includes growing MyDeal's private label business, investing in its proprietary technology (the development and launching of mobile apps for iOS and Android devices), and investing in advertising to grow its customer base and brand.

MyDeal's CEO and Managing Director, Sean Senvirtne, commented: "This is a very exciting day for MyDeal, and I am delighted with the strong support that we received from both institutional and retail investors. Today is an important milestone for MyDeal, however, this is still the beginning of our journey. I would like to thank our long-term shareholders for their ongoing support, and welcome new shareholders to be part of the exciting journey ahead of us."

Trading update.

As with fellow ecommerce companies Kogan.com Ltd (ASX: KGN) and Temple & Webster Group Ltd (ASX: TPW), MyDeal has started FY 2021 strongly.

Gross sales for the first quarter came in at $56.67 million, up 317% on the prior corresponding period.

Also growing strongly was its active customers. MyDeal now has 669,897 active customers, which is an increase of 268% since this time last year.

Should you invest $1,000 in Kogan.com Limited right now?

Before you buy Kogan.com Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Kogan.com Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 7 February 2025

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Kogan.com ltd and Temple & Webster Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Gainers

A runner high-fives as he crosses the finish line in pole position
Share Gainers

Here are the top 10 ASX 200 shares today

It was a woeful end to a woeful week this Friday for ASX investors.

Read more »

Siblings jumping on a trampoline.
Share Gainers

3 ASX 200 stocks rocketing higher in this week's falling market

These three ASX 200 outperformers have surged 17% to 28% this week!

Read more »

A man wearing a white coat holds his hands up and mouth open with joy.
Healthcare Shares

Guess which ASX healthcare stock is rocketing 25% on big UK news

Investors are sending this ASX healthcare stock rocketing on Friday. But why?

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Share Gainers

Why Domain, Mayne Pharma, QBE, and Telix shares are jumping today

These shares are ending the week with a bang. Here's why they are jumping.

Read more »

Businessman working and using Digital Tablet new business project finance investment at coffee cafe.
Share Gainers

Here are the top 10 ASX 200 shares today

It was an awful Thursday for ASX investors.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Megaport, Nanosonics, Telstra, and Universal Store shares are storming higher today

These shares are catching the eye on Thursday with strong gains.

Read more »

Silhouettes of nine people climbing a steep mountain to the top at sunset, and helping each other along the way.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX 200 shares endured yet another rough session this hump day.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Corporate Travel, Light & Wonder, Navigator Global, and St Barbara shares are racing higher

These shares are having a good session on hump day. But why?

Read more »