Tableau Software shares close up 64 percent in market debut

Fri May 17, 2013 4:16pm EDT

Christian Chabot, (bottom R) CEO of Tableau Software, waits for his company's stock to begin trading on the floor of the New York Stock Exchange, May 17, 2013. REUTERS/Brendan McDermid

Christian Chabot, (bottom R) CEO of Tableau Software, waits for his company's stock to begin trading on the floor of the New York Stock Exchange, May 17, 2013.

Credit: Reuters/Brendan McDermid

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(Reuters) - Shares of Tableau Software Inc rose as much as 68 percent in their trading debut as investors expect the rising interest in big data to power the data analysis software maker's growth.

Tableau Software shares closed up nearly 64 percent at $50.75 on the New York Exchange on Friday.

Tableau's revenue has jumped more than 800 percent to $127.7 million since 2008 as more companies use data analysis tools to manage efficiency and gauge customer preference.

"It has a unique position in DI (data interpretation) market with a focus on data visualization and making data more easy to understand through interactive charts and dashboards," said Jeff Gaggin, an analyst with investment research firm JG Capital.

Enterprise software company Marketo Inc's shares rose as much as 80 percent in their market debut and closed at $23.10 on the Nasdaq.

Interest in data visualization software makers has spiked after the successful debut of Splunk Inc in April 2012. The company's shares have nearly tripled in value since then to its Thursday close.

Shares of business software companies such as WorkDay Inc, Guidewire Software Inc and Service Now Inc are also trading well above their IPO prices.

Tableau's software turns complicated data into graphics and charts for clients.

The "Big Data" company's shares opened at $47 in their New York Stock Exchange debut, 52 percent above the IPO price of $31. The shares touched a high of $52.07, valuing the company at $2.99 billion. Splunk has a market value of about $4.7 billion.

The amount of digital information created, replicated and consumed worldwide will grow exponentially to 40 trillion gigabyte in 2020 from 800 billion gigabyte in 2010, Seattle-based Tableau said in its IPO filing, citing data from International Data Corp.

Worldwide spending on business intelligence tools, a subset of the overall business analytics software market, was $12.9 billion in 2012, according to IDC estimates.

Tableau raised $254 million, after increasing the size of the IPO to 8.2 million shares.

The company's customers include Deere & Co, Sears Holdings Corp and affiliates of Deloitte Touche Tohmatsu Ltd and Verizon Communications Inc.

Tableau, which is backed by venture capital firms New Enterprise Associates and Meritech Capital Partners, will be led by cofounder Christian Chabot, who was an associate partner at Softbank Venture Capital.

MARKETO SHINES TOO

Marketo raised about $79 million from its IPO, after shares were priced at $13 each, the high-end of its expected price range.

At day's high, the company was valued at $836 million.

Marketo investors include Institutional Venture Partners, InterWest Partners, Mayfield Fund, Storm Ventures and Battery Ventures.

Tableau listed Goldman Sachs and Morgan Stanley as lead underwriters to its offering.

Goldman Sachs and Credit Suisse were the lead underwriters to Marketo.

(Reporting By Neha Dimri in Bangalore; Editing by Sriraj Kalluvila)

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