New Relic IPO raises $115M, stock jumps 48% in debut
Cromwell Schubarth
Silicon Valley Business Journal
Updated: Dec 12, 2014, 2:37pm PST
New Relic, led by founder and CEO Lew Cirne (hands up, center), rang the opening bell on the New York Stock Exchange Friday after the San Francisco company raised $115 million in an IPO. Its stock jumped nearly 48 percent on its first day.
New Relic raised $115 million and its stock jumped nearly 48 percent as the market for new public companies from the Bay Area took an upturn this week.
The San Francisco cloud-based software-analytics company was the third company from the region this week to top its IPO price targets, selling 5 million shares at $23 each. It was expected to sell them for between $20 and $22.
The stock finished the day at $33.82 a share on the New York Stock Exchange .
Underwriters have the option to buy 750,000 more shares, so the total raised could eventually reach as much as $132.3 million.
The other companies that beat expectations were San Francisco-based LendingClub, which raised $865.5 million and then saw its stock jump by 56 percent, and Palo Alto-based Big Data software company Hortonworks, whose stock leaped 64 percent and it raised $100 million.
The performance of these three Bay Area IPOs of the year provides some hope for others who postponed going public in the second half of 2014, a year that started with a bang.
It was also a good day for Benchmark VC Peter Fenton, who was an early investor and on the board of both Hortonworks and LendingClub. He has now backed three companies that raised $100 million or more in IPOs this year, beginning with Zendesk, which went public in May.
New Relic, led by CEO Lew Cirne, raised about $214.5 million since it was founded in 2008. Its biggest shareholders are Benchmark (21.9 percent), Trinity Ventures (13.6 percent), Insight Venture Partners (5.6 percent) and Tenaya Capital (4.8 percent).
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