Justworks IPOs and lists on Nasdaq

In the middle of December, Justworks, a human capital management system (HCM) aimed at small and medium-sized enterprises (SMEs) announced its intention to list on Nasdaq through an initial public offering (IPO).

Now the HCM company has formally launched its IPO and announced it will list on Nasdaq as JW.

IPOs have been a popular way for tech companies to go public for many years – notable examples include Zoom, Reddit, and Airbnb.

However, this also becoming a popular method in the HR tech sector specifically. For instance, in 2021 alone, the likes of Monday.com, Qualtrics, WalkMe, and Udemy all went public through IPOs.

Employee experience company Qualtrics listed more than 21 million shares of its Class A common stock in November 2021, while workplace management software-focused Monday.com floated on Nasdaq in June and its IPO increased its value to $7.6 billion.

WalkMe, a digital adoption platform, also launched its IPO in June, while EdTech firm Udemy sold 14.5 million shares at between $27 and $29 a pop in its October IPO.

Inside Justworks IPO

With Justworks’ IPO it looks likely that 2022 will also be a big year for HR tech IPOs.

Crunchbase recently argued that human resource management solution Gusto and BambooHR, which is a software as a service aimed at SMEs, have the potential to go public through IPO In the future.

But what exactly does Justworks’ offering look like?

The SME-focused HCM is going to be selling 7 million shares of its Class A stock at between $29 and $32 each. It also expects to grant underwriters a 30-day option to buy 1.05 million shares at the IPO prices with an underwriter discount.

According to Justworks, Goldman Sachs, JP Morgan and Bank of America are acting as joint managing bookrunners on the proposed offering.

Watch this space to see what the future holds for Justworks and the broader HR tech space in 2022.