Software Specialist MuleSoft Is Crushing It On Wall Street, Shares Up 46 Percent During IPO
MuleSoft shares are soaring on the company's public trading debut Friday, jumping more than 46 percent to $24.84 per share as of this afternoon.
The San Francisco-based software integration specialist priced 13 million shares at $17 on Thursday, exceeding its expected price range of between $14 to $16 per share. MuleSoft hopes to raise over $220 million in funding.
MuleSoft, who was named a leader in Gartner's 2016 Magic Quadrant for Integration Platform-As-A-Service, has over 700 employees and more than 1,000 customers including Accenture, Coca-Cola, Netflix, Salesforce and Tesla.
[Related: Presidio COO Talks IPO Aftermath, M&A Strategy Ahead And 'Juggernaut' Cisco]
"It's a great market right now," said Greg Schott, CEO of MuleSoft in an interview with CNBC. "Investors want to know there's a long-term growth trajectory for the company. They want to know that there's a big market and big market opportunity, and if you have those two things and you're showing that you're executing as a company, then you usually can go forward and we're pretty excited."
MuleSoft generated $188 million in revenue for 2016, up 70 percent year over year, according to an S-1 filing the company filed in February with the US Securities and Exchange Commission. However, the vendor has also accumulated a deficit of $236 million as of Dec. 31, 2016.
The vendor's Anypoint Platform supports service-oriented architecture, Software-as-a-Service integration, and API management.
MuleSoft says its software platform has the capability to connect nearly every technology in a standardize way by unlocking data using APIs and connecting it to external systems and applications. The solution enables customers to manage and secure the flow of data between all systems in the enterprise.
MuleSoft isn't the only technology company to go public this month, as solution provider powerhouse Presidio entered the public arena last week. The IPO The IPO raised $233 million from investors, with all of the funding being used to pay down the company's roughly $1 billion debt, according to Presidio.
Since initially trading at $13.50 per share last week, Presidio's shares hovered around $14.25 this week. Presidio's shares are currently at $14.44 as of Thursday afternoon.
On March 13, San Francisco-based startup Okta filed for its IPO hoping to raise $100 million. Okta's platform focuses on identity and access management for cloud applications, although the vendor has expanded into mobile device management, two-factor authentication, and application development and API security.