Figs, a company that makes fashionable and comfortable medical care apparel, soared Thursday in its public debut, which also marked the debut of the first IPO accessible to users of the Robinhood trading platform.
Shares of Figs jumped 36% to close at $30.02 after they priced at $22 each. With the first session in the books, Figs’ valuation was about $6 billion.
“The Figs IPO is good news for Robinhood users, as Figs is the best looking IPO we’ve seen so far in 2021,” said David Trainer, CEO of investment firm New Constructs, in a note late Wednesday before trading began Thursday.
Robinhood last week introduced IPO Access, a service that allows users to buy shares of companies at IPO prices and before they begin trading on open markets. Robinhood said the service further democratizes trading as IPO shares usually go to institutions or wealthier investors.
The IPO price for Figs was higher than the expected range of $16 to $19. Trainer in his note said Robinhood users would be randomly selected for the opportunity to buy Figs at the IPO price before they went live on the New York Stock Exchange.
Meanwhile, investors were waiting for news about Robinhood’s own move into the public market. The company has been planning to reveal filings for its own IPO, according to Bloomberg, after confidentially filing for one in March.
Figs was profitable in 2020 and 2019, and carries a plausible path to justify expectations baked into the stock price if it can maintain current margins and above-average revenue growth rates, said Trainer.