HR software company Justworks delays U.S. IPO plans

Jan 12 (Reuters) – Justworks Inc said on Wednesday it has postponed its initial public offering (IPO) in the United States, citing market conditions.

The New York-based company had hoped to sell 7 million shares for between $29 and $32 each to bring in $224 million at its top end, according to a filing earlier this month.

The company’s decision to delay its IPO comes amid a recent sell-off in tech stocks and the poor stock market performance of several companies that went public in 2021.

More than 60% of companies that went public last year are currently trading below their IPO price, according to data from Refinitiv.

Founded in 2012, Justworks’ cloud platform enables small and medium-sized businesses to manage payroll, benefits, compliance, and human resources. In 2020, it acquired Boomr, which automates the process of tracking employee work hours.

The company planned to list its shares on the Nasdaq under the symbol “JW”.

Goldman Sachs Group Inc (GS.N), JPMorgan Chase & Co (JPM.N) and Bank of America Corp (BAC.N) were the lead underwriters for the offering.

Reporting by Mehnaz Yasmin in Bangalore; Editing by Devika Syamnath

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