Squarespace headquarters in New York City.
Courtesy of SquarespaceSquarespace has set the date for its direct listing.
The webhosting company plans to go public on the New York Stock Exchange “on or about May 19,” a prospectus said.
Squarespace is not raising fresh capital with the offering. Instead, company shareholders have registered for resale 40,401,820 Class A common stock. The stockholders may or may not sell their shares, the filing said.
The company plans to trade under the ticker SQSP.
Squarespace is the fourth company to file for a direct listing this year. ZipRecruiter is going public via a direct listing and plans to make its debut on the NYSE on May 26. Coinbase (ticker: COIN), a cryptocurrency exchange, used the method to list its shares in April on the Nasdaq, after the gaming platform Roblox (RBLX) did so for its March debut on the NYSE.
Companies mainly use direct listings because they’re cheaper than traditional IPOs and allow shareholders to sell their stock to the public without intermediaries. Investment banks in a direct listing typically work as financial advisors for the company going public.
Squarespace has listed 14 investment banks that are working as advisors, including Goldman Sachs, J.P. Morgan Securities, Barclays Capital, and RBC Capital Markets. Goldman and JP Morgan will work with the designated market maker to set Squarespace’s opening trading price, the prospectus said.
Direct listings also don’t include lockups. This means Squarespace stockholders can sell their shares as soon as the company lists later this month.
Founded in 2003, Squarespace is a website building and payments company. Its platform is used by millions of customers in over 180 companies, a prospectus said. Squarespace was profitable in 2020 although income dropped 47% to $30.1 million as of Dec. 31 from about $58.2 million in profit in 2019. Revenue rose 28% to $621.1 million in 2020.
In March, Squarespace acquired Tock, a restaurant tech platform, for $415 million, the prospectus said.
Squarespace has raised $578.5 million in funding, Crunchbase said. This includes a $300 million round in March that valued Squarespace at $10 billion. Investors have included Dragoneer Investment Group, Fidelity, Tiger Global Management, D1 Capital Partners, T. Rowe Price Associates, Accel Capital and General Atlantic.
Squarespace Founder and CEO Anthony Casalena has registered 6.2 million shares that he may or may not sell, the prospectus said. General Atlantic is offering about 13.7 million shares, Index Ventures has registered roughly 6.5 million shares and Accel is offering nearly 3.9 million.
Write to Luisa Beltran at luisa.beltran@dowjones.com
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Squarespace Is Set to Go Public Later in May - Barron's
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