News Startups

MuleSoft stock jumps up almost 46 percent on the first day of trading

sagacito funding/infosys, mulesoft
Share on Facebook
Tweet about this on TwitterShare on Google+Share on StumbleUponShare on LinkedInPin on PinterestShare on Reddit

MuleSoft’s IPO seems to have been a success by any standards. The company’s public offering took a decidedly similar path to Snap Inc’s IPO. For instance it opened up at $17, above its expected opening range of $14-$16. Stock closed trading at around  $24.75, an impressive 46% premium over the company’s opening price.

In what was the first enterprise tech IPO of the year, MuleSoft managed to raise $221 million. However, we are going to reserve judgment on the stock until it has been trading for a couple of weeks. After all, look at Snap. The company followed a very similar growth curve and even managed to reach $29 at its peak, only to drop below $20 now.

Meanwhile, less people profited  from the IPO than you might imagine. After all, not everyone got access to the $17 price. Indeed, the only people who would have been able to pick up stock at its opening price would have been institutional investors and high net-worth individuals with relationships with the underwriting banks. For the rest, the stock opened up at $24.25 only to close at $24.75 — translating into profits of around half a dollar per share.

The company is the first enterprise tech entity to go public this year. It had raised $259 million in funding earlier at a $1.5 billion valuation. Stock owners include Lightspeed Venture Partners (17.1%), Hummer Winblad (15.8%) and New Enterprise Associates (14.3%).

Well, let’s hope the company can maintain its momentum — or failing which,  trade stably. This is also a win for NYSE, which has scored two simultaneous tech IPOs over NASDAQ.

A bibliophile and a business enthusiast.

[email protected]


Add Comment

Click here to post a comment

Your email address will not be published. Required fields are marked *

Subscribe

Be a part of a thriving community of core-tech, no-nonsense readership in India. Subscribe to our post-by-post updates, right here.