Streamer FuboTV's Stock Rises in Market Debut

fuboTV
Courtesy of fuboTV

fuboTV

The initial public offering raised $183 million and valued the company at $620.2 million.

The stock of streaming service fuboTV rose in its market debut on Thursday.

As of 11:20 a.m. ET, the stock was up 10 percent at $11.

The company had late on Wednesday priced its initial public offering at $10 apiece, right in the middle of its $9-$11 target range. It also increased the number of shares offered in the IPO from 15 million to 18.3 million, raising $183 million. The company's stock now trades on the New York Stock Exchange under ticker symbol FUBO.

The IPO comes amid a recent boon for streaming video providers due to the coronavirus pandemic lockdowns.

FuboTV, led by CEO David Gandler, earlier this year merged with technology firm Facebank Group and named Edgar Bronfman Jr. executive chairman.

It had ended 2019 with 316,000 paid subscribers, up from 229,000 in the previous year. Its 2019 revenue rose 96 percent to $146.5 million. The firm says it offers more than 50,000 live sporting events each year.

In September, fuboTV projected third-quarter revenue of $50 million-$54 million, which would mean a 27 percent-38 percent increase year-over-year, with its subscriber count to reach 370,000-380,000. It noted that would be "an increase of over 28 percent year-over-year and up from 20 percent growth previously forecast. "The expected strong performance is "the result of a heavy fall sports calendar, including NFL and college football," the company said.

Update, 11:40 a.m. ET: The market capitalization data has been corrected.