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. 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. Stable market conditions, a series of interest rate cuts and enthusiasm around artificial intelligence stocks are drawing more companies to the listings market at the start of the year, after a U.S. government shutdown last October forced many to shelve their plans. 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. 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. Goldman Sachs, UBS Investment Bank and Wells Fargo were among the lead book-running managers for the offering. (Reporting by Prakhar Srivastava and Utkarsh Shetti in Bengaluru; Editing by Shailesh Kuber and Sahal Muhammed) (The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)
