zSpace (ZSPC) shares soared into the stratosphere to close their first day of NASDAQ trading at $22.00 – up $17.00 for a whopping 340 percent gain from their $5.00 IPO price – in their NASDAQ debut on volume of more than 2.55 million shares. That’s a moonshot – to the max. (A moonshot occurs when a stock doubles its IPO price – up 100 percent – or more – on its first day of trading.) zSpace traded as high as $32.69 during the day. Shares of zSpace started trading at $5.80 – up 80 cents for a 16 percent gain – at 11:36 a.m. EST today – Thursday, Dec. 5, 2024 – on NASDAQ volume of over 73,900 shares.
The San Jose, California-based EdTech company offers augmented reality (AR) and virtual reality (VR) learning experiences.
zSpace priced its tiny IPO on Wednesday night, Dec. 4, 2024, at the $5.00 mid-point – as expected – and raised $9.38 million by selling 1.875 million shares, the number of shares in the prospectus.
Roth Capital Partners and Northland Capital Markets acted as the joint book-runners.
At pricing, zSpace had a market cap of about $112.3 million.
zSpace said its proprietary hardware and its software platform provide “the unique ability to deliver an interactive stereoscopic 3D learning experience to our users without the need to utilize VR goggles or specialty glasses,” according to the prospectus.
‘Hands On’ for STEM & Skilled Trades
The company, founded in 2006, is focused on both K-12 schools in the U.S. and the career and technical education markets, the prospectus said.
“Our hands-on “learning by doing” solutions have been shown to enhance the learning process and drive higher student test scores, as evidenced by a study on the utility of 3D virtual reality technologies for student knowledge gains published in the Journal of Computer Assisted Learning in 2021,” zSpace said in the prospectus.
“We allow students and teachers to experience learning in the classroom that may otherwise be dangerous, impossible, counterproductive, or expensive using traditional techniques. Our platform serves a broad range of critical educational tools designed for K-12 science, technology, engineering and math (STEM) lessons as well as training skilled trades in areas such as health sciences, automotive engineering/repair, Unity3D® software programming and advanced manufacturing.”
On the road to going public, zSpace cut the number of shares twice – settling on nearly 1.88 million shares – down from 2.0 million at an interim stage – and down from 3.0 million in the original terms filed in late July 2024. zSpace also changed the investment bank in the second position on its joint book-running team by naming Northland Capital Markets as a replacement for Craig-Hallum Group.
zSpace is not profitable, according to the prospectus. The EdTech company reported a net loss of $21.87 million on revenue of $44.21 million for the 12 months that ended March 31, 2024.
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