Shares Of Coupa Software (COUP) Soar On IPO
Zacks Investment Research | Oct 06, 2016 01:25AM ET
Shares of Coupa Software COUP are soaring over 100% after its initial public offering in what could be another encouraging sign for an IPO market that is slowly heating up. The cloud-based, enterprise-level spend management company raised $133.2 million by selling 7.4 million shares at $18.
Coupa garnered a significant amount of buzz heading into its IPO day after the company priced its initial public offering at the high end of its range late Wednesday. Investors are also excited about the company’s recent growth; for the six-month period ended July 31, Coupa saw revenues of $60.3 million, up 74% year-over-year.
Based in San Mateo, California, Coupa provides a cloud-based platform that helps businesses control their spending. Founded by two former Oracle (NYSE:ORCL) employees, Coupa counts Coca-Cola Consolidated (NASDAQ:COKE) , Adidas (OTC:ADDYY) , Subway, Sears (NASDAQ:SHLD) , Concentrix, and Salesforce (NYSE:CRM) among its several hundred worldwide clients.
The tech IPO market has been sluggish for most of the year, with a few lone stars like Twilio (NYSE:TWLO) , Acacia Communications (NASDAQ:ACIA) , and LINE (BK:LNE) receiving most of the attention. However, with Coupa’s big first day, successful tech IPOs are becoming a trend as of late.
Q3’s activity kicked off with the market debut of Talend (NASDAQ:TLND) , a “big data” integration startup. Shares of TLND are currently trading around $25.15, well above its IPO price of $18 (also read: After Successful IPO, Meet Big Data Company Talend ).
Other recent IPOs include Everbridge (NASDAQ:EVBG) , a SaaS emergency communications service that gained over 22% on its first day of trading, and The Trade Desk (NASDAQ:TTD) , a digital advertising platform that is currently trading about 42% higher than its IPO price.
One of the most important factors for private companies looking to go public is the performance of IPOs from industry peers, so the latest patterns indicate that the tech IPO market could finally be getting busy this year.
For more coverage on IPOs, check out the Zacks Friday Finish Line team’s exclusive interview with Kathleen Smith, co-founder of IPO-based research firm Renaissances Capital:
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