Cloud-based marketing software provider HubSpot went up 20.4% in first-day trading, closing at $US30.10 per share.
That gives HubSpot a market cap of roughly $US913.8 million.
Its shares opened at $US32.95 a share Thursday morning, and went as low as $US29.08 midday, before closing at $US30.10.
Its 20% first-day pop wasn’t exactly eye-popping, but it’s a decent surge considering there were some questions about HubSpot’s management and rising costs lately.
The Cambridge, Mass.-based software company set its IPO price at $US25 per share Wednesday, slightly above the price range of $US22 to $US24 it had set earlier this week. It sold 5 million shares at that price, raising $US125 million in total through the IPO.
In 2013, HubSpot recorded $US77.6 million in sales, but had a net loss of $US34.4 million. In the first six months of 2014, it had $US51.3 million in revenue and lost $US17.7 million. But HubSpot is a software-as-a-service company, so its customers pay for the service as they use it, meaning its revenue gets recorded over time on a subscription-basis.
HubSpot is best-known for its “marketing automation” software, which helps sales and marketing people generate better sales leads and strategies. It mostly deals with small and medium size companies with less than 2,000 employees.
Business Insider Emails & Alerts
Site highlights each day to your inbox.