Cloudflare’s stock opened at $18 per share on its first day of trading on the public markets, 20 percent higher than the pricing it set on Thursday. The company continued to appreciate to nearly $20 per share as of the time of writing.
The company initially set a price range between $10 and $12 per share, later raising the interval to $12 and $14. It priced its IPO price at $15 per share on Thursday afternoon, raising $525 million in its debut.
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Cloudflare raised $332.1 million as a private company, with its last private valuation at $3.25 billion. At its IPO price of $15, Cloudflare was worth about $4.4 billion. That worth has grown to around $5.6 billion as of midday on the East Coast.
It’s a pretty stark contrast to the first day of trading for SmileDirectClub, the other major IPO of this week. SmileDirectClub’s stock opened lower than its set price on its first day of trading, and ended the day nearly 28 percent under its IPO price.
Cloudflare opening at a stock price significantly higher than it expected shows that public investors aren’t too worried about the company’s latest revelation in its most recent filing. Cloudflare disclosed in a regulatory filing earlier this week that it may have violated U.S. trade sanctions.
“We identified that our products were used by, or for the benefit of, certain individuals and entities included in OFAC’s Specially Designated Nationals and Blocked Persons List,” the company wrote in the filing.
Illustration Credit: Li-Anne Dias