JFrog (FROG) stock jumped by double digits as trading began Wednesday, raising $509 million with an initial public offering that exceeded expectations for the developer of software tools. The JFrog IPO is one of several large public offerings this week.
The company priced 11.6 million shares at $44, well above the estimated range of $39 to $41. The JFrog IPO gave it a market valuation of about $4 billion.
JFrog stock soared by 60%, near 70.60, during afternoon trading on the stock market today/
JFrog’s leading product is designed to enable organizations to continuously deliver software updates across any system. Also, it provides a bridge between software development and deployment. It uses a software-as-a-service business model.
Also, Dell Technologies (DELL) is an investor in the company, with a 9.3% stake.
Strong Interest In JFrog IPO
According to IPO Boutique, a research and advisory from, the JFrog IPO was “multiple times oversubscribed,” suggesting the demand for shares was much higher than what was being made available.
For the six-month period ended June 30, JFrog reported revenue of $69.25 million, up 50% from the year-ago period. It posted a net loss of $426,000, vs. a $2 million loss in the year-ago period, according to the JFrog IPO filing.
The company says it has 5,800 customers. JFrog is one of several high-profile companies that will make their public debut via an IPO this week.
Among them is Snowflake (SNOW), which surpassed heightened expectations with an initial public offering that raised $3.4 billion. That set a record as the largest U.S. software deal ever. The Snowflake IPO priced shares late Tuesday and will trade Wednesday on the New York Stock Exchange under the ticker SNOW.
The lead underwriters for the JFrog IPO are Morgan Stanley, JPMorgan and BofA Securities.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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