Initial public offerings or IPOs are known as a great way for investors to get good returns in a relatively short time. On average, they can bring investors 40% in the first 3 months. Once the initial funding stages are out of the way, IPOs can be a great way for companies to sell their shares on the open market and raise more capital to continue their growth.If you’re into computer games you most likely know this company. It’s responsible for the engine behind thousands of mobile games available on the market, so you might have asked, “is Unity publicly traded?” Read on to find out about Unity stock IPO and all the important information about Unity IPO date and price.
Unity History
Unity is a video game software development company with headquarters in San Francisco. Originally founded in 2004 in Denmark under the name Over the Edge Entertainment or OTEE, the company changed its name to Unity Software Inc. in 2007 and continued to do business as Unity Technologies.
Most famous for the development of Unity, a cross-platform game engine used in video games and other applications. First released at the Apple Worldwide Developers Conference in June 2005 as a game engine for MacOS X, it has since been adapted for a range of mobile, desktop, console, and VR platforms.
The company bet on the emerging mobile market early on and is particularly popular for the development of mobile games for iOS and Android. It is relatively easy to use for beginner developers and is popular with indie game devs.
Unity can be used for both 3D and 2D games, interactive experiences, and simulations. The engine has also been used outside of the gaming industry, such as in films, architecture, engineering and even by the U.S. Armed Forces.
Since the company’s founding in 2004, Unity Technologies has seen significant growth due to the popularity of its engine. However, the company reported losses every year from 2004 to 2020, which is nevertheless pretty standard for a tech startup trying to aggressively grow its business.
By 2018, fundraising over multiple rounds brought up the company’s valuation to $3 billion.
By this point the company management must have been asking themselves, “when is Unity going public?” On August 24, 2020, Unity filed their S-1 form to start the IPO process in order to get the necessary funding to continue their growth as well as pay back some of their debt.
Read on to find out about Unity IPO 2020 and other key info.
Unity Public Listing Key Data and IPO Date
Unity IPO Date: September 18, 2020
Ticker: U
Exchange: NYSE
IPO stock price: $52
Valuation at IPO: $13.6 billion
Market cap (10/12/22): $9.35 billion
CEO: John Riccitiello
Category: Gaming
Unity launched its IPO on the NYSE on September 18, 2020 and began trading under the stock symbol U.
The Unity IPO price was set at $52 per share but debuted at $75 on the day, closing the first day of trading at $68 per share, up 31%.
CEO John Riccitiello, who owns 3.5 million Unity shares, had a net worth of around $500 million at the time of the IPO, which tripled within a year of their IPO date during the 2020-2021 bull run, thus giving the Unity boss a net worth of $1.4 billion. However, now that the market for tech stocks is down, this figure is considerably lower.
So What About Investing Now?
Even though Unity’s stock price is over 80% down from the all-time high of $210 it reached in November 2021, this may be both a risk and and opportunity. Unity is a solid business with solid revenue growth, but their losses are still high and they show no signs of profitability in the near future. Despite their strong position on the gaming market, they may be too dependent on other companies like Apple for their ability to grow. And because we know how quickly things can change in this industry, their popularity now does not guarantee their future success.
Still, the Unity IPO is a great illustration of how investing in IPOs can bring investors great gains right at the start, which is why it’s a good idea to keep an eye on upcoming IPOs.
Investments like IPOs are speculative and much riskier than big companies with proven business models, robust earnings, and potential to scale. While it’s fun to try, don’t rely on IPOs to bring you money, timing the market is hard. An even better approach is to build a balanced portfolio of stocks in an industry you know or believe in. Download Gainy to check out TTF stock collections to invest in themes you like.
Check out our IPO section to look at other scheduled IPOs. If you want to find companies that match your interests, investment goals and portfolio, try Gainy for some great IPO investment ideas, as well as established blue-chip companies and a variety of other assets.
FAQ
Is Unity a public company?
Yes, and the Unity stock IPO date was September 17, 2020. The game engine developer was listed on the New York Stock Exchange with the fancy ticker U.
Is Unity a SPAC?
Unlike many other companies going public in 2020-2021, Unity launched a traditional IPO instead of merging with a special purpose acquisition company (SPAC). The latter was a very popular way for companies to go public in these two years but it seems to have less pros than cons.
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