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StubHub, the popular online ticket marketplace, has recently filed for a US initial public offering, marking a significant move in the tech industry amid a challenging time for Wall Street stocks. The New York-based company announced its plans to list its common stock on the New York Stock Exchange under the symbol STUB.
While the size and price range of the share sale have not been disclosed, sources close to the matter suggest that StubHub aims to raise more than $1 billion in the offering, with an implied market value of around $16.5 billion. Leading underwriters for the offering will be JPMorgan and Goldman Sachs.
In its filing to US regulators, StubHub reported a net loss of $2.8 million on revenue of $1.77 billion last year, compared to a profit of $405 million on revenue of $1.37 billion in 2023. The company also disclosed an accumulated debt of $1.5 billion as of the end of last year, along with the identification of “material weaknesses” in its internal control over financial reporting.
The filing comes at a time when President Donald Trump’s trade agenda is causing volatility in US equities, raising concerns about economic growth and the IPO market’s revival after a three-year drought due to higher interest rates. Despite these challenges, there has been an uptick in US equity capital markets activity in recent weeks, with companies like Google parent Alphabet acquiring cybersecurity start-up Wiz for $32 billion and New Jersey-based data center operator CoreWeave planning to raise $2.7 billion in what is expected to be the biggest tech IPO of the year.
Founded in 2000 by Eric Baker, StubHub was acquired by eBay for $310 million before being bought by Viagogo for over $4 billion in 2019. Last year, the company reported gross merchandise sales of $8.7 billion, up 27% from the previous year, with consumers purchasing over 40 million tickets from more than 1 million sellers on its marketplace. StubHub’s success was further boosted by Taylor Swift’s 2023 Eras tour, which generated $665 million in ticket sales, accounting for roughly 10% of the company’s annual sales that year.
As StubHub prepares for its IPO, all eyes will be on investor appetite for tech listings in the current market environment. With the support of leading underwriters and a strong track record of performance, StubHub is poised to make a significant impact in the US equities market. Stay tuned for more updates on this exciting development.
