Sydney-based gig economy site Airtasker had a successful initial public offering (IPO) on Tuesday with its share price growing by 75 per cent during the first day of trading.
The company's long-anticipated IPO was delayed by a day due to an ASX error but investors didn't seem to mind as its opening price of 65 cents quickly shot up, reaching heights of $1.16 on Tuesday.
Airtasker was valued at $255 million prior to public trading.
Co-founder and CEO of Airtasker Tim Fung said he was "delighted" with the response from investors who had already signalled their desire for the stock.
"We have an incredible foundation to build from and we’re excited to be taking our new shareholders on the exciting journey to fulfill Airtasker’s mission: to empower people to realise the full value of their skills," he said.
Formed in 2011, Airtasker lets people list a job they need done – ranging from household chores to graphic design and IT – and finds nearby workers to offer quotes and complete the task.
In a note to investors before the IPO, Airtasker chair James Spenceley said the capital raise would help grow its marketplace platform and expand internationally.
"The board and leadership team are focused on the opportunity to significantly grow the Airtasker business and grow it in a way that we can all be proud of," he said.
Around 45 per cent of Airtasker staff took up the offer to buy in before its public listing at an average investment of $22,400, according to the company.
But some former employees expressed frustration in the days leading up to the IPO, telling the Australian Financial Review Airtasker changed the conditions of their stock options prior to the launch, meaning they would have to vest options at 76 cents, rather than 65.
Seven West Media sold its $45 million stake in the company at 65 cents per share prior to the public launch.
Airtasker will hope to meet the success of fellow Australian tech companies like Afterpay which went public in 2016 for $1 per share and has since seen its price balloon.
In just a few months last year, Afterpay's price rocketed to become one of the hottest securities on the ASX, hitting highs of $158 last month. It closed today at $107 per share.
