ServiceNow had a phenomenal IPO today, soaring nearly 37 per cent in its New York Stock Exchange stock debut.ServiceNow planned to price shares between $15 to $17 but it opened at $23.16 and that was after raising its opening price to $18. Shares were selling for over $26 in after-hours trading. It sold 11.65 million shares, reports Reuters.
ServiceNow is the first technology company taken public by Morgan Stanley since Facebook and some are calling it the company that revived the IPO market.
But as sunny as all this is, this IPO is one more signal that we’re in a bubble—or near to one. Its valuation is well over $2 billion, which is pretty amazing for a company that hasn’t reached $100 million in revenue yet. In fiscal year 2011, ServiceNow reported $92.6 million in revenue, with a profit of $9.8 million. That compares to a loss of $29.7 million in 2010.
ServiceNow offers cloud apps that serve enterprise IT departments. Its claim to fame is a self-service app. When an employee has a problem with their PC, apps or the network, they can fire up ServiceNow and find the answer on their own. If that doesn’t work, they can use the app to get IT on the line through a chat session.
ServiceNow is yet another successful enterprise IPO in 2012. Splunk and Infoblox had hot debuts before Facebook, too.
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.