Squarespace valuation plunged by more than a third in its debut on the New York Stock Exchange on Wednesday, after shares of the website-hosting service fell 13 percent below their reference price amid a broader market sell-off.
Shares of the New York-based company opened at $48 apiece on a day when Wall Street’s main indexes were down on inflation jitters. The NYSE had set a reference price of $50 each.
Its latest share price of $43.70 gave Squarespace a market capitalization of less than $6 billion – a steep drop from its valuation of $10 billion after a funding round in March.
The NYSE reference price was already at a 27 percent discount to the private deal that Squarespace completed in March at $68.42 a share.
Rival Wix had a market capitalization of $12.8 billion as of Tuesday, while GoDaddy was worth $13.7 billion, as of last close.
Squarespace’s valuation of less than $6 billion on its market debut was about half that of web-hosting rivals like GoDaddy.LightRocket via Getty Images
The latest stock market float comes days after choppy market conditions forced at least three companies, including mortgage insurer Enact Holdings and hearing care services company Hear.com, to pull