Navan Shares Drop 12% on Nasdaq Debut Amid Market Challenges

BENGALURU, India (AP) — Shares of Navan, Inc. began trading on the Nasdaq on Thursday, dropping 12% from their initial public offering price amid challenging market conditions. The travel technology company priced its IPO at $25 per share, raising approximately $923 million and valuing the firm at $6.2 billion.

The stock opened at $22, affected by uncertainties tied to a prolonged U.S. government shutdown and a general slowdown in the IPO market. Matt Kennedy, a senior strategist at Renaissance Capital, noted, “The IPO market has been a bit wobbly… Some of that is due to the shutdown and global trade tensions.”

Founded in 2015 and previously known as TripActions, Navan aims to streamline business travel and expense management using artificial intelligence. CEO Ariel Cohen stated, “We see ourselves as an AI-first company,” emphasizing potential savings of 15% on travel budgets through their platform.

Despite the initial trading drop, optimism surrounds Navan’s offerings. The company reported a 32% increase in trailing revenue, currently at $613 million. Notable clients include Zoom, Shopify, and Unilever.

Analysts believe that companies like Navan, capable of leveraging AI effectively, have a strong chance of success in the current IPO landscape, which has seen a mix of eagerness from investors and ongoing market volatility.

Navan utilized proceeds from the IPO to reduce its significant debt burden, part of which includes $657 million in liabilities. Their technology platform is designed to enhance client experiences and cost efficiency in business travel, reflecting the growing consumer preference for travel over goods.