Data Software Firm Palantir Debuts on New York Stock Exchange
Palantir starts trading publicly through a direct listing, opening at $10 per share. The data analysis company reaches an initial market valuation of $16.5 billion despite years of private market volatility.
Palantir begins trading on the New York Stock Exchange with shares opening at $10 before closing at $9.50. The data analysis software company pursues a direct listing rather than a traditional initial public offering, allowing existing shareholders to sell up to 20% of their stakes to new investors. This debut gives the company an initial market capitalization of $16.5 billion based on outstanding shares.
The public market entry comes after years of private trading that sees significant fluctuations from the company's 2015 peak valuation of $20.4 billion. The stock trades as high as $11.42 on its first day before dropping, and technical issues prevent some current and former employees from accessing the system to sell their shares early in the session.
Palantir remains a controversial figure in the technology industry due to its contracts with U.S. Immigration and Customs Enforcement and its unique governance structure. Co-founders Peter Thiel, Alex Karp, and Stephen Cohen hold a special class of stock that grants them outsized control over the company. Furthermore, CEO Karp uses the prospectus to criticize Silicon Valley's advertising-driven business models and distances the firm by moving its headquarters to Colorado.