May 22 Shares of cloud-based e-commerce software
provider ChannelAdvisor Corp soared as much as 39
percent in their debut, as enterprise software makers continue
to draw investor attention with their strong revenue models.
The company's shares opened up 25 percent, after its initial
public offering of 5.8 million shares was priced at $14 per
share, the high end of its pricing range. They touched an
intraday high of $19.46, valuing the company at about $400
ChannelAdvisor, founded in 2001, helps companies sell their
merchandise across online channels such as Amazon.com Inc
, Google Inc, eBay and Facebook Inc.
The Morrisville, North Carolina-based company, whose
competitors include Mercent Corp, intends to use the proceeds to
expand its international operations and sales and marketing
Some of its largest customers include Ann Taylor, eBags.com,
J&R Electronics and Jos. A. Bank Clothiers.
Investment firms Kodiak Venture Partners, Advance Technology
Ventures and New Enterprise Associates own about two-thirds of
Last week, data analysis software maker Tableau Software Inc
saw its shares jump as much as 68 percent in its
trading debut on rising interest on big data.
Shares of business software companies such as WorkDay Inc
, Guidewire Software Inc and Service Now Inc
are also trading well above their IPO prices.
Enterprise companies, which sell services to businesses
rather than individuals, have risen 37 percent, on average, in
the two years since their IPOs, compared with 13 percent for
consumer companies, according to market data firm Ipreo.
The companies are being buoyed by new technologies like
mobile and "cloud" computing, trends that are creating
tremendous business opportunities for young enterprise firms,
investors say, leading them to grab market share from incumbents
like Oracle Corp and SAP AG.
One of the biggest reasons for the enthusiasm involves the
cloud, or the ability to access data on the Internet from remote
servers rather than from their own computers in house - and the
savings and flexibility that come with it.
Goldman Sachs and Stifel Nicolaus are the lead underwriters
on the offering.
ChannelAdvisor shares were trading up 33 percent at $18.53
on the New York Stock Exchange on Thursday.