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Life360's successful Nasdaq debut

Published 07/06/2024, 12:03 pm
Updated 07/06/2024, 01:00 pm
© Reuters.  Life360's successful Nasdaq debut

Life360 Inc. (ASX:360) made its debut on the Nasdaq overnight and closed at its listing price of $US27 ($40).

Trading under the code LIF, shares opened at $US26 on Thursday in New York after CEO Chris Hulls rang the opening bell, but recovered to close at $US27.

Shares were $US27.25 in after-hours trading.

The San Francisco-based company, known for its daily tracking app and Bluetooth tracking device brand Tile, announced on May 10 its Nasdaq listing plan.

Life360 sold 3.7 million shares to raise $US100 million, with existing investors selling an additional 2.05 million shares at an 8% discount to its ASX listing price.

Life360’s shares entered a trading halt on the ASX before the listing, having surged more than 96% this year to last close at $14.69, with a market cap over $3 billion.

Hulls said the surging share price could be a sign the IPO window has reopened.

“Our share price is in a Goldilocks state. Even six months ago, we were way too low to raise any money – the dilution would have been too much, would have been very credibility-reducing.

"If we were too high, the price would be too high to get a good deal done ... You never know when these windows open and close so we struck while the iron was hot.”

Lifting its US profile

Hulls highlighted the Nasdaq listing would help raise the company's US profile.

“We are under the radar relative to our scale, we think it is time to get our story out there,” Hulls said.

Despite plans to remain on the ASX in the short term, delisting could be considered if trading volumes shift to the Nasdaq. Hulls emphasised the importance of supporting current investors and maintaining ASX200 status.

“We really want to do right by the investors who got us to where we are, and purely from a selfish standpoint, while the float is so high on the ASX, and we’re an ASX200 company. Why would we get in the way of that?”

Since its ASX listing in 2019 at $4.79, Life360’s share price has fluctuated significantly, hitting lows during the COVID-19 pandemic and peaking at $13.65 in November 2021.

Despite volatility, Hulls expressed pride in the company’s performance and investor returns.

Read more on Proactive Investors AU

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