Update 12/16/2016 4:00 pm: Trivago ended its first trading day up 7%. Bookmark the Previous and Upcoming Motif IPOs page to keep track of the stock price, along with other Motif IPO stocks.
Update 12/16/2016 11:00 am: Trivago IPO opens trading at $11.20, traded as high as $12.43 and still above $12. We’ll how the day ends. Congrats to all parties involved!
Received allocation of Trivago IPO shares from Motif Investing around 8:15 am via email. My allocation is as follows:
- Requested – $500
- Received – 12.47 shares @ $11/share
- Amount Received – $137.17
- Allocation percentage – 27.4%
Please add your allocations in the comments section.
Update 12/15/2016 10:15 pm: Email received at 7:38 pm EST from Motif indicates Trivago IPO finalized at $11, $2 under the expected range. Shows low demand, could explain why Motif got shares in the first place. Low pricing reminiscent of SQ IPO, ended up with sizable one-day-pop. Negative Seeking Alpha article didn’t help.
Existing customers at Motif Investing who have expressed interest in IPOs were surprised yesterday (12/13/16) by a 2:40 pm email announcing the immediate opportunity to participate in the Trivago IPO. The email provided a link to a hidden reservation page.
Within 20-30 minutes, the reservation window closed. Countless eager IPO investors (many of whom are Access IPO email subscribers) were left in the cold.
I was fortunate to successfully request $500 worth. The maximum reservation amount was $3,000. The Trivago IPO is estimated to debut its first trade on Friday 12/16/2016. Pricing expected the evening before. The price range is $13-$15.
Goes to show that sometimes you need to be nimble to be able to participate in IPOs.
The First J.P. Morgan-Led IPO on Motif
This IPO has many significant characteristics to keep us on our toes. Most notable, this is the first exclusive IPO on the Motif Investing Platform underwritten by J.P. Morgan. You may recall back in October 2015, Motif splashed into the IPO market with a big partnership agreement with J.P. Morgan.
We haven’t seen or heard of one IPO opportunity since that announcement until yesterday. So it’s damn exciting, especially for our readers who have been extremely patient.
The Reg A + IPOs, ShiftPixy and HomeUnion, certainly got us excited too. But those are startups. The Trivago IPO is the first “real” or traditional IPO on the platform. It’s awesome to see this agreement finally come to fruition.
The Trivago IPO was admittedly not on my radar at all. We’ve been so focused on ShiftPixy and HomeUnion, this one came out of the blue. I had nearly given up on the J.P. Morgan and Motif partnership.
Another reason this one slipped under the radar is that the Trivago is based in Germany. So they filed a SEC Form F-1 and F-1/Amended. I don’t follow those filings as regularly and they aren’t in the recent IPO RSS filing feed. I’ll need to look more closely at these filings and decide if I should add to the feed.
On top of that, the filing name is listed as “travel B.V.” which is vague enough to pass over. I’m familiar with the name Trivago, though I’ve never used the website.
Who is Trivago?
Trivago is a Düsseldorf, Germany-based travel website for booking hotel rooms. The minimalist website is focused mostly on meta-search for hotels. It’s considered one of Europe’s top travel websites.
From the SEC filing:
Trivago is a global hotel search platform. Our mission is to “be the traveler’s first and independent source of information for finding the ideal hotel at the lowest rate.” We are focused on reshaping the way travelers search for and compare hotels while enabling hotel advertisers to grow their businesses by providing access to a broad audience of travelers via our websites and apps. Our platform allows travelers to make informed decisions by personalizing their hotel search and providing access to a deep supply of hotel information and prices.
You don’t actually book with Trivago. The website links to various hotel booking partners in a cost-per-click business model, similar to Kayak and TripAdvisor.
In 2012, Expedia (EXPE) bought a majority stake in Trivago and will remain in control after the IPO. The offering is for American depository shares (ADS). Proceeds will be used to increase their financial flexibility and increase public profile and awareness on the US exchanges.
Lessons Learned from the Trivago IPO on Motif
First and foremost, only Motif Investing customers (those with an established account), had a shot at this IPO. If you want a shot at future IPOs underwritten by J.P. Morgan, you need to open an account.
Also on that page is a place to sign up for Motif IPO news. Make sure to submit your email there. Some account holders reporting they didn’t get the email.
Make sure to connect a bank account right away. This IPO requires enough funds quickly because the opening trade is this week. I funded my reservation right away.
A few months back I spoke to someone affiliated Motif. This person explained that J.P. Morgan had many eager partners wanting shares for high demand IPOs, and Motif was simply getting left out.
This time, they got a small piece to share with their customers. So small, in fact, that few were able to reserve in time. And those of us that did reserve still aren’t guaranteed any shares. We’ll have to see on Thursday evening and Friday how this plays out.
Additionally, as you go through the share reservation process, Motif’s platform requires you to acknowledge that you’re read the Prospectus. The document is 200 pages long. But the reservation window only lasted 20 minutes to reserve shares! Impossible.
Always reserve first and read the prospectus later. You can always back out of a deal. If the shares are gone before you get a chance to participate, you’re out of luck.
We’ve also learned that J.P. Morgan is going to be stingy on the number of shares it hands over to Motif. So you’ve got to be nimble. If you see the email in time, don’t hesitate. Reserve.
Since this is a traditional IPO, shares are more limited. That’s unlike what we’ve seen for the Reg A + IPOs. ShiftPixy and HomeUnion are trying to lure in as many investors as possible, up to $50 million of funding. So it’s not as much a race to reserve shares.
I’ll be updating this post at the top as the pricing and allocations happen. Check back here for updates. Also, if you were able to make a reservation, please share your allocations in the comments section when you receive your shares. Good luck to those participating.
And thanks for J.P. Morgan and Motif Investing for making the Trivago IPO opportunity possible.