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Thoughtworks Rises With Others in Flurry of High-Performing IPOs

This content was published on September 15, 2021 - 20:43

(Bloomberg) -- Technology consulting firm Thoughtworks Holding Inc. climbed as much as 40% in its trading debut after raising $773 million in one of four large initial public offerings priced above their marketed ranges.

Leading a burst of U.S. IPOs that delivered first-day gains for investors on Wednesday, the Chicago-based company’s shares closed at $29.39 in New York trading, giving the company a market value of almost $9 billion. The company sold almost 37 million shares for $21 Tuesday after marketing them for $18 to $20.

Thoughtworks, which is changing its name from Turing Holding Corp. as part of the IPO, is kicking off a seasonal surge in U.S. listings following the U.S. Labor Day weekend. The 781 IPOs raising more than $248 billion on U.S. exchanges this year already top what was an all-time record of $180 billion raised during all of 2020, according to data compiled by Bloomberg.

At least five other companies filed this week to begin marketing their shares for listings of more than $100 million. They include Sovos Brands Inc., the owner of Rao’s Homemade pasta sauces, as well as online jeweler Brilliant Earth Group Inc.

Companies registering big share gains in their trading debuts Wednesday included three others that exceeded goals in their IPOs:

  • On Holding AG, the maker of On running and performance shoes, rose 46% in its debut after raising $746 million.
  • Coffee chain Dutch Bros Inc. finished its first day of trading up 59% after its $484 million offering
  • Definitive Healthcare Corp. scored the best first-day gain of the group, closing up 60% after its $420 million IPO.

Thoughtworks, with more than 9,000 employees based in 17 countries, provides a combination of engineering and consulting services.

Digital Transformation

Chief Executive Officer Guo Xiao said he sees a tremendous amount of growth from the ongoing digital transformation of businesses.

“We don’t want to just follow digital trends, we want to help establish them,” he said in an interview.

“There will be a constant state of change in the next 10 to 20 years,” he said. “Every business will become a modern digital business. It will be embedded. It will be part of the DNA.”

Thoughtworks, backed by Apax Partners, had net income of $37 million on revenue of $498 million during the first six months of 2021, according to its filings with the U.S. Securities and Exchange Commission. That compared with net income of $38 million on revenue of $401 million during the same period last year.

Apax Control

Funds affiliated with Apax will continue to control the company after the IPO, according to the filing. Siemens AG and affiliates of Singapore’s GIC Pte also own stakes in the company.

The offering was led by Goldman Sachs Group Inc. and JPMorgan Chase & Co. Thoughtworks shares are trading on the Nasdaq Global Select Market under the symbol TWKS.

©2021 Bloomberg L.P.

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