By Prakhar Srivastava and Utkarsh Shetti
Jan 23 (Reuters) – EquipmentShare.com shares rose 16.3% in their Nasdaq debut on Friday, valuing the construction rental firm at $7.16 billion and signaling strong investor appetite for its tech-driven business model.
The company’s first-day performance echoed crypto custody firm BitGo’s strong market debut on Thursday, as demand for new listings spills over into 2026.
A stable market, interest rate cuts and enthusiasm around artificial intelligence stocks have prompted companies to return to the IPO market, after a U.S. government shutdown last October had forced many to shelve plans.
The Columbia, Missouri-based EquipmentShare’s stock opened at $28.50, compared with its offer price of $24.50 per share. It raised $747.3 million in its IPO on Thursday.
Founded in 2015, EquipmentShare operates the T3 software platform, which connects workers, construction machinery and materials across jobsites, and provides tracking and maintenance data for contractors.
“Investors are evaluating EquipmentShare’s tech platform as a potential mechanism to outperform the growth rates of legacy rental firms,” IPOX research associate Lukas Muehlbauer said.
“Still, the expansion plans under high leverage makes the stock sensitive to any pauses in the expected interest rate cutting cycle.”
The company’s OWN program lets third-party investors own rental equipment managed by EquipmentShare, helping it expand without bearing the full cost. The investors get a yield when the equipment is rented by contractors.
“The OWN program allows for a different way to manage and monetize equipment … instead of putting them on your balance sheet, you could monetize those assets,” CEO Jabbok Schlacks told Reuters in an interview.
High borrowing costs and fluctuating project pipelines are pushing more contractors to rent equipment rather than buy them, driving sales at firms like EquipmentShare.
“Ninety percent of the top 50 largest general contractors in the U.S. use EquipmentShare, and we have tens of thousands of other customers,” Schlacks said.
EquipmentShare’s major backers include venture capital firms Romulus Capital and Insight Venture Partners, as well as investment adviser firm Anchorage Capital Group.
(Reporting by Prakhar Srivastava and Utkarsh Shetti in Bengaluru; Editing by Shailesh Kuber and Sahal Muhammed)
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