The software IPO comes roaring back

After getting burned by the flashy Facebook (FB) initial public offering, investors are happy to embrace the boring.

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.

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