On February 16, 2022, shares of Direct Digital Holdings Inc. (DRCT) finally made a comeback in the premarket after its recent IPO. The stock seems to have rebounded after the close of its IPO on February 15, 2022.
In the previous trading session, DRCT varied between a high of $2.65 and a low of $2.43 at 593.49K shares. The stock closed the session in the red at $2.50, suffering a loss of 6.37%. The day’s volume remained below the average of 1.97 million. The stock finally saw a reversal in the premarket as it gained 15.20%, at the last check on Tuesday. Hence, DRCT stock was trading at a price of $2.88 per share in the premarket, at the time of writing.
The demand side-ad platform (DSP) and supply-side ad platform (SSP) provider, Direct Digital Holdings Inc. was formed in 2018. Currently, the company has a market capitalization of $10.68 million while its 4 million shares are outstanding in the market.
Initial Public Offering
On February 10, the company announced the pricing of its underwritten initial public offering. In the IPO, DRCT offered 2,800,000 units at a price to the public of $5.50 per unit. Each of the units consists of one Class A common stock share of the company and one warrant to buy a Class A common stock share.
Additionally, the company also granted a 45-day option for buying an additional 420,000 Class A common stock shares and/or warrants to purchase the same amount of shares at the same price as the IPO. Moreover, the units were immediately separable and were issued separately in the offering by the company.
The Class A common stock and warrants commenced trading separately on Nasdaq on February 11, 2022, under “DRCT” and “DRCTW”.
Furthermore, the company expected gross proceeds of $15,400,000 from the offering, less discounts, and commissions.
The offering was expected to close on February 15, 2022.
DRCT Stock Movement Since the IPO
DRCT stock had been all but going down since its Class A common stock and warrants commenced trading on Nasdaq on February 11. In the past five days, since its IPO, the stock has declined by a huge 88.24%. The downtrend of the stock finally ended after the IPO supposedly closed yesterday. Although the stock is down by a huge chunk since its IPO, it finally seems to be on the right path towards recovery.DRCT may as well go further above its IPO value if the company upholds progress and development. How the stock actually performs all depends on the company.
