Coursera soars 23% in trading debut following $4.3 billion IPO
Investors warmed up to the future prospects of Coursera and bid the stock higher in its first day of trading on Wednesday.
Shares of the online education company surged as much as 23%, hitting a high of $40.53. Coursera had priced its IPO at $33 per share, which was at the high end of its target range, giving it a valuation of $4.3 billion.
The share sale raised $519 million in proceeds for the company. Coursera’s previous funding round in July was at a $2.6 billion valuation.
Coursera saw a surge in business in 2020 as the COVID-19 pandemic forced students out of physical schools and into remote learning mode. The company recorded revenue of $294 million in 2020, representing a year-over-year increase of 59%.
But the company is not yet profitable, as it saw losses of $67 million last year. And it remains to be seen whether the jump in business it saw amid the pandemic is sustainable as schools begin to hold more in-person classes as the COVID-19 vaccine rolls out.
Coursera was founded in 2012 by Daphne Koller and Andrew Ng and currently counts more than 3,700 colleges and universities as customers.
Shares of Coursera trade on the New York Stock Exchange under the ticker symbol “COUR.”