Software maker SailPoint Technologies got a warm welcome from Wall Street on its first day as a public company.
The Austin-based company raised $240 million in an initial public offering on Thursday. The company priced 20 million shares at $12 each, according to a securities filing. That was well over the $9 to $11 per share price range the company had been seeking.
Shares of the cybersecurity software company soared 18 percent in mid-morning trading Friday, and was up more than 12 percent shortly before the market’s close.
Founded in 2005 by three Austin software veterans with roots going back to Tivoli Systems, SailPoint provides identity and access management software.
The company has 825 customers and competes with industry giants including IBM Corp. and Oracle Corp.
Austin hasn’t had a sizable IPO since April 2016, when Aeglea BioTherapeutics Inc. raised $50 million. Aeglea produces engineered human enzymes for treating cancer and rare genetic diseases.
SailPoint reported revenue of $118.3 million and a $13 million loss for the first nine months of 2017.
For all of 2016 the company posted revenue of $132.4 million and a loss of $3.2 million.
The company previously raised $21 million from Austin Ventures, Silverton Partners and Lightspeed Venture Partners before agreeing in 2014 to sell a majority ownership stake to Chicago-based investment firm Thoma Bravo LLC.
Financial terms were not disclosed, but a SailPoint spokeswoman at the time said the Thoma Bravo investment was several hundred million dollars
The company said it would use its IPO proceeds for general corporate purposes, including working capital, operating expenses, capital expenditures and funding the company’s growth.
SailPoint is trading on the New York Stock Exchange under the ticker symbol SAIL. Underwriters are Morgan Stanley, Citigroup, Jefferies and RBC Capital Markets.
Austin lost two of its most high-profile publicly traded companies this year. In April, online coupon company RetailMeNot was acquired by San Antonio-based Harland Clarke Holdings in a deal valued at $630 million.
In June, Austin’s homegrown grocer Whole Foods Market agreed to be acquired by Amazon in a deal valued at $13.8 billion.
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