Insights

SiteMinder (ASX:SDR) share price is up 51% in two days following IPO

It has been a great start to life as a listed company for SiteMinder…
The post SiteMinder (ASX:SDR) share price is up 51% in two days following IPO appeared first on The Motley Fool Australia. –

The SiteMinder Ord Shs (ASX: SDR) share price is charging higher again on Tuesday.

At one stage today, the leading open hotel commerce platform provider’s shares were up a further 9% to a record high of $7.65.

When the SiteMinder share price reached that level, it was up a whopping 51% from Monday’s IPO listing price.

Why is the SiteMinder share price rocketing higher?

Investors have been scrambling to buy SiteMinder shares since they landed on the ASX boards yesterday after the company raised $627 million via an oversubscribed IPO.

This gave the company a market capitalisation of $1.36 billion at listing. Though, with the SiteMinder share price rocketing higher since then, its market capitalisation is now approximately $2 billion.

This means its shares are changing hands for approximately 19x June’s annualised recurring revenue (ARR) of $104.9 million.

What is SiteMinder?

SiteMinder was founded in Australia in 2006, and is the world’s leading open hotel commerce platform. It is trusted by more than 32,000 hotels, across 150 countries, to sell, market, manage and grow their business.

SiteMinder generated more than 100 million reservations worth over US$35 billion in revenue for hotels in the 12 months prior to the start of the pandemic.

Its customers are hotels and other accommodation providers, including vacation rentals, lodges, motels, and enterprise properties. Approximately 75% of SiteMinder’s subscription base is small and medium-sized businesses, generating approximately 71% of FY 2021 subscription revenue.

The future

While SiteMinder has been growing at a strong rate in recent years, management believes its journey is only really getting started.

Commenting on the IPO, SiteMinder’s CEO and Managing Director, Sankar Narayan, said: “In many ways, we’re just getting started. We are very excited to have taken this step, which represents the next stage of the SiteMinder business and our ongoing evolution.”

“The global hotel industry has experienced evolution like never before in recent times. The need for technology like SiteMinder’s hotel commerce platform is of substantial relevance as hotels have had to digitally transform with haste, while adjusting to their customers’ changing needs and behaviours.”

This could make the SiteMinder share price one to watch in 2022. Particularly given the increasingly positive outlook for travel markets.

The post SiteMinder (ASX:SDR) share price is up 51% in two days following IPO appeared first on The Motley Fool Australia.

Should you invest $1,000 in SiteMinder right now?

Before you consider SiteMinder, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and SiteMinder wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Siteminder (ASX:SDR) share price rockets 35% on ASX debut

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!