Shares of Thoughtworks Inc. jumped nearly 24% in their Nasdaq debut on Wednesday, valuing the company at nearly $9 billion, after the software consultancy firm priced its initial public offering well above range.
The company's stock opened at $26, compared with its initial public offering (IPO) price of $21. This was above its targeted price range of $18 to $20.
Backed by Germany's Siemens AG, Thoughtworks sold 16.4 million shares in the IPO, raising about $344 million. Other investors, including funds advised by Apax Partners, sold about 20.4 million shares.
The company, which helps firms digitize their operations, counts Canadian wireless carrier Telus Corp, German luxury carmaker Daimler AG, U.S. supermarket chain Kroger Co and payments company PayPal Holdings Inc as customers.
The Chicago, Illinois-based company posted 40.3% growth in revenue to $260.4 million in the three months ended June.
Digitization the Name of the COVID Game
Banking on a boom in businesses increasingly digitizing operations following the pandemic, the company's executives said the 28-year old firm has been looking to go public in recent years.
"The market that we operate in is expected to double by 2025 ... We will hire across the globe, and continue to invest in our service offerings," Chief Financial Officer Erin Cummins told Reuters.
Cummins said hiring and a continued expansion of the business was the company's top priority. Thoughtworks has more than 9,000 employees as of June, operating in 17 countries.
Goldman Sachs and J.P. Morgan were the lead underwriters for the offering.
© 2021 Thomson/Reuters. All rights reserved.