Co-founder's long-time dream realized! StubHub (STUB.US) IPO priced at $23.5, raising $800 million. To debut on the New York Stock Exchange tonight.

Ticketing platform StubHub Holdings Inc. (STUB.US) set its initial public offering (IPO) price at the midpoint of the recommended range, raising $800 million in funds through the offering, achieving a long-standing goal of co-founder Eric Baker to take the company public. According to a statement released by the company on Tuesday, the New York-based enterprise ultimately sold 34 million shares of stock at a price of $23.50 per share, while the previously recommended price range was between $22 and $25 per share. Based on the IPO price, and the number of outstanding shares listed in submissions to the U.S. Securities and Exchange Commission (SEC), the company's market value reaches $8.64 billion. Data compiled indicates that the U.S. IPO market is currently experiencing a surge: since the Labor Day holiday on September 1st, excluding special purpose acquisition companies (SPAC) and other financial instruments, the total amount raised in the market is approximately $4.7 billion. Companies such as Klarna Group Plc (KLAR.US), Figure Technology Solutions Inc. (FIGR.US), and Gemini Space Station Inc. (GEMI.US) all saw significant rises in their stock prices on their first day of trading. Reports suggest that StubHub has been planning to go public at least since 2022, initially intending to do so through a direct listing on the capital market, with an estimated valuation exceeding $13 billion. Last year, amidst a surge in ticket sales driven by Taylor Swift's "Reputation Stadium Tour," the company attempted to move forward with its plans to go public, but later postponed them citing an "unfavorable market environment." In April of this year, the announcement of widespread tariffs by the U.S. led to a stock market crash, prompting StubHub to once again suspend its listing attempts. Currently, StubHub is expanding its ticket sales business with Rio Tinto plc Sponsored ADR, although this business accounts for only a small proportion of its overall ticket sales revenue. This month, the company announced a multi-year partnership agreement with Major League Baseball (MLB) to be responsible for selling tickets to MLB events. Documentation reveals that in the six months ending on June 30th, StubHub's gross transaction value (including fees paid by buyers and income received by sellers) increased to $4.4 billion, surpassing the $3.9 billion figure from the same period last year. At the time of this IPO, U.S. regulatory agencies and legislators are increasingly scrutinizing the ticketing industry. Reports on Monday indicated that the Federal Trade Commission (FTC) is investigating Ticketmaster, a platform under Live Nation (LYV.US), focusing on whether it has taken sufficient measures to prevent the illegal resale of tickets on its platform. Ticketmaster denies any wrongdoing and plans to defend itself. In March of this year, the White House issued an executive order concerning the ticketing industry, requiring relevant agencies to submit a report on the "compliance status of the industry" by the end of September. Additionally, the Department of Justice and attorneys general from dozens of states have filed a joint lawsuit seeking to break up the combined entity of Live Nation and Ticketmaster. The case is set to go to trial in March of next year; simultaneously, a bill containing a provision to "prohibit resellers from selling or promoting tickets they do not actually possess" is currently making its way through the Senate. Co-founder's ambition StubHub's current corporate structure reflects the ambition of co-founder Baker. Baker, who now serves as the CEO of the company, had left StubHub before it was acquired by eBay for $310 million in 2007, and went on to establish the ticketing platform Viagogo in Europe. SEC filings show that in 2019, Viagogo agreed to acquire StubHub for $4.05 billion, with the transaction completed the following year; following regulatory approval, the two companies completed their business integration in 2022. After the IPO, Baker will hold 4.2% of StubHub's Class A common stock; meanwhile, with his Class B common stock, each share of which carries 100 voting rights, he will control 88.3% of the voting rights of the company. Post-IPO, Madrone Partners LP is expected to hold 2.7% of the voting rights, WestCap Management will control 1.3% of the voting rights, and Bessemer Venture Partners will hold 1% of the voting rights. Both Madrone and Bessemer currently have seats on the StubHub board. Financially, documentation reveals that in the six months ending on June 30th, StubHub generated $827.9 million in revenue and incurred a net loss of $76 million; whereas in the same period last year, the company had revenue of $803.5 million and a net loss of $24 million. The IPO for StubHub is being led by J.P. Morgan and Goldman Sachs Group, Inc., with over ten other banks participating in underwriting. The company's stock is expected to begin trading on the New York Stock Exchange on Wednesday, under the ticker symbol "STUB."