The software IPO comes roaring back
Model N debuted on the market Wednesday and saw shares jump 44%.
Take a look at Model N (MODN), a company with a dull name and a dull business. It makes revenue management software for life science and technology companies. Zzzz.
But boring is good these days, and enterprise software companies of all stripes have seen solid market momentum. Model N had investors excited Wednesday, when shares zoomed as high as 44% in its trading debut.
The California company had priced shares at $15.50 each, and even that was higher than the expected range of $12.50 to $14.50 a share. With only 6.7 million shares up for trading, the company raised nearly $104 million.
That pricing turned out to be a little low. In morning trading Wednesday on the New York Stock Exchange, shares jumped past $22 -- a 44% gain -- after opening at $20.30. By midday, shares had settled back to $21.15.
Why do investors like Model N? For one thing, it has some big-name customers, including Dell (DELL), Nokia (NOK), Johnson & Johnson (JNJ) and Merck (MRK). Revenue is growing at a fast pace, from $50 million in 2010 to $84 million in 2012. And customers are very loyal, with a 95% renewal rate.
Investors have renewed their interest in Silicon Valley, notes the Mercury News. Last week, Silver Spring Networks (SSNI) saw a 29% gain in its first day of trading, and Marin Software of San Francisco will start trading later this week.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market finished the Tuesday session on the defensive after spending the entire day in a steady retreat. The S&P 500 (-0.6%) posted its third consecutive decline, while the small-cap Russell 2000 (-0.9%) slipped behind the broader market during afternoon action.
Equity indices were pressured from the start following some overnight developments that weighed on sentiment. The market tried to overcome the early weakness, but could not stage a sustained rebound, ... More
More Market News
A light news day combined with heavy technicals weighed on the market.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'