July 1, 2009 / 12:27 AM / 9 years ago

LogMeIn IPO sees "1st day pop," closes up 25 percent

NEW YORK (Reuters) - Software maker LogMeIn Inc (LOGM.O) became the latest technology company to soar in its trading debut on Wednesday, finishing up 25.1 percent the day after its initial public offering.

The Woburn, Massachusetts, company’s shares opened at a 25 percent premium over the IPO price, and rose as much as 31 percent on Nasdaq before ending 2 cents above the $20 start price.

LogMeIn, whose backers include chipmaker Intel Corp (INTC.O), sold 6.7 million shares for $16, the top of the estimate range, on Wednesday, raising $106.7 million in the 11th IPO of 2009 in the United States, according to Thomson Reuters. That tally excludes IPOs by real estate investment trusts and blank check companies.

LogMeIn made the fourth best debut in 2009, tying with Chinese video games maker Changyou.com Ltd (CYOU.O). It was the 10th IPO out of 11 this year to jump in its inaugural session, with technology companies making the strongest starts.

The two strongest first-day performances in 2009 have been a 59.5 percent jump by online restaurants reservations system OpenTable Inc OPEN.O, and a 39.6 percent rise by language training software maker Rosetta Stone Inc (RST.N).

LogMeIn, which was founded in 2004, sells software that helps businesses and consumers gain access to their computers remotely by using the Internet, competing against Citrix Systems Inc (CTXS.O), Microsoft Corp (MSFT.O) and Cisco Systems Inc’s (CSCO.O) WebEx Communications Corp.

LogMeIn recently reported its first-ever profit, earning $2.1 million in the first three months of 2009, after revenues shot up 73 percent from a year earlier to $17.2 million.

LogMeIn’s backers include Intel Capital, and venture capital firms Prism Venture Partners and Polaris Venture Partners.

The IPO was led by JP Morgan Chase & Co (JPM.N) and Barclays Capital, Barclays Plc’s (BARC.L) investment banking arm.

Reporting by Phil Wahba, editing by Gerald E. McCormick, Gunna Dickson and Richard Chang

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