(Reuters) – Shares in Ping Identity Holding Corp. (a jump of 25 percent in their market debut on Thursday, giving the identity of the software company, with a market value of about $1.46 billion.
Ping Identity’s shares opened at $18.75, up to as much as $19.74 at the beginning of the trade.
The company priced its initial public offering at $15 per share on Wednesday, raising about $187.5 million at a valuation of about $1.16 billion.
If the insurers exercise their option of purchasing an additional 1.9 million shares for total gross proceeds of the offering may be as much as $215.6 million.
The company said it plans to use the IPO’s net proceeds to the repayment of the outstanding borrowings under the term of the loan is to be provided. (a little bit.m/2mi6wqC)
Ping Identity, which counts the likes of Microsoft Corp. among its competitors in the management of the user identities that will help to determine which employees will have access to the technology in a company. These services are becoming increasingly important as part of the corporate staff need to have a reliable connection to many of the applications in the cloud, in order to get their work done.
Ping Identity, the ownership of the buy-out of the company by Vista Equity ners, it had posted sales of $201.6 million in 2018, up 17% from a year earlier. It reported a net loss of $13.4 million by 2018, compared with a profit of $19 million in 2017.
Vista Equity partners purchased a Denver-based Ping Identity, for us $600 million by 2016. An initial public OFFERING, it would be a rare instance of Vista Equity partners cashing out of an investment through an initial public offering, and since it has a tendency to make is to sell their portfolio companies, frankly, to large companies or to other private equity firms.
Goldman Sachs, BofA Securities, RBC Capital Markets and Citigroup are the IPO’s lead underwriters.
Reporting by Abhishek Manikandan in Bengaluru; Editing by Maju Samuel