Splunk shares double in value on debut

Thu Apr 19, 2012 1:33pm EDT

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(Reuters) - Data analytics software maker Splunk Inc's shares doubled in value on their market debut, as it tapped investor demand for enterprise-focused companies in an otherwise weak IPO market.

Technology companies such as Splunk, Demandware Inc and Guidewire Software Inc have been doing well at the markets, even as investors shun other deals.

The IPO market has seen poor pricings, pulled deals and delayed filings in the past few weeks.

Splunk's stock was trading up almost 89 percent at $32.05 on the Nasdaq. Nearly 11 million shares exchanged hands by 1.30 pm Eastern Time.

The company's debut experienced a minor hitch and trading was temporarily halted.

"There was a 'fat finger' trade," Splunk Chief Executive Godfrey Sullivan told Reuters.

"Somebody hit the wrong button and entered a trade for Splunk at $18 and the stock was halted for about 5 minutes till we could sort out what was really going on."

Some trades were also cancelled by the NYSE Arca stock exchange and the stock's high-point was revised to $34.72 from $40, according to Thomson Reuters data.

Splunk was set up in 2004 to troubleshoot problems in IT departments. It indexes and manages machine data from computers, servers and mobile devices.

Last June Splunk Chief Executive Godfrey Sullivan had told Reuters that the company was gearing up to go public in 2012.

Network-control company Infoblox Inc and business security products maker Proofpoint Inc are also expected to see strong demand when they price their shares later on Thursday.

Splunk, which had raised its expected price range to between $11 and $13 per share earlier this week, priced 13.5 million shares at $17 apiece on Wednesday night.

At the IPO price, the company had a market valuation of about $1.58 billion.

Luxury bag maker Tumi Holdings Inc, which also made its market debut on Thursday after pricing above its expected range, saw a surge in the price of its shares.

The company opened 44 percent above its IPO price, and was trading up 54 percent at $27.70 on the New York Stock Exchange.

(Reporting by Aman Shah in Bangalore; Editing by Joyjeet Das)

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