Mikey Tom September 23, 2016
Apptio (NASDAQ: APTI), a provider of IT business management software, debuted on the public market Friday. The company set a share price of $16—above the previously announced range of $13 to $15—and raised a total of $96 million. The stock saw an early bump, opening for trading at $23.40, and closing the day at $22.55, representing a 40.94% uptick from the increased pricing.
When Apptio first filed for its IPO about a month ago, opinions differed over how the public market would receive the company. While the warm receptions that enterprise tech startups Twilio (NYSE: TWLO) and Talend (NASDAQ: TLND) received earlier this year suggested that Apptio would also succeed, the company has seen its net losses increase for the past three years, and it has yet to turn a profit. However, its revenues have also been trending upwards, much to the apparent liking of the market.
In a sparse year for VC-backed tech IPOs, the last week’s spurt of activity was undoubtedly welcomed by many in the industry. The Trade Desk also completed its public offering and also priced above its announced range, seeing its shares soar on the first day of trading to close up more than 67%. See a trend here?
Talks of the IPO window for tech companies being closed have circulated for months, but it now appears that window is more open than many believed. Eyes now turn to Coupa Software, which just set the terms for its IPO. The company plans to sell 6.7 million shares for a price between $14 and $16. Another successful offering could help pull some of the unicorns off the bench and into the game.
Apptio is the second VC-backed tech company based in the Seattle area to see a successful IPO this year. Impinj, a provider of RFID technology for a wide array of uses including inventory management, completed its public offering in late July—pricing at the upper end of its announced range and seeing its shares close the first day of trading up 28%. For a city that is often left out of discussions about top startup locales, these big wins are notable, a fact made all the more significant when also considering early backing for both companies: Seattle-based VC Madrona Venture Group was an early investor in both Impinj and Apptio. So, kudos to the team over there on the hot streak!