(Reuters) – Shares of Jamf Holding Corp JAMF.O jumped 77% in their U.S. debut on Wednesday, giving the software maker a market value of $5.35 billion.
The blockbuster listing comes as many tech firms have benefited from companies allowing employees to work remotely, with the COVID-19 pandemic driving up demand for cloud computing services. Jamf offers cloud computing software and the company has said demand has not been adversely affected as people work remotely.
Jamf shares opened at $46, up from their IPO price of $26. By 1:46 p.m. eastern time, shares pared gains to trade up 54.5% at $40.17.
Jamf on Tuesday raised $468 million in an upsized offering of 18 million shares, having initially set a targeted price range of $21 to $23 per share.
“Our intent of going public is to be able to commit to our customers that we are there to innovate for them for the long term. There’s no better way to do that (than) as a public company,” Chief Executive Dean Hager said in an interview.
Jamf, founded in 2002, counts IBM Corp (IBM.N) and SAP (SAPG.DE) among its customers and makes software that helps companies manage their employees’ Apple Inc (AAPL.O) devices.
“The demand for Jamf’s deal was overwhelming. The appetite for software companies with this type of growth profile is marking valuations higher and higher,” said Jeff Zell, senior research analyst and partner at IPO tracking firm IPO Boutique. Jamf’s net loss narrowed to $8.3 million for the three months ended March 31, from $9 million a year earlier. Revenue jumped nearly 37% to $60.4 million during the same period. Funds owned by buyout firm Vista Equity Partners will own about 77% of Jamf after the offering.
Proceeds from the IPO will in part go toward paying down a portion of the debt incurred through Vista’s acquisition of Jamf in 2017. Goldman Sachs, J.P. Morgan, BofA Securities and Barclays are among the lead underwriters to Jamf’s offering.
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