Datadog’s stock opened at $40.35 on its first day of trading, 49.4 percent higher than its initial public offering price.
The New York-based company priced its shares at $27 each on Wednesday night, raising $648 million by selling 24 million shares. The company first set a price range of $19 to $22 per share and later increased it to between $24 and $26 per share.
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Datadog, which provides monitoring and analytics services for developers and IT operations, is trading on the Nasdaq under the ticker symbol “DDOG.” Its shares were trading at $37.49 apiece around 12:30 p.m. EST on Thursday.
The public market’s enthusiasm for the company makes sense. Datadog reported fast revenue growth and slim losses when it filed its S-1 last month.
Its healthy metrics also attracted the interest of at least one company looking to acquire it. Bloomberg reported on Wednesday that Cisco recently offered more than $7 billion for Datadog, but the latter declined the acquisition offer.
The company raised $147.9 million in total funding as a private company from investors like Iconiq Capital and Index Ventures. Datadog’s valuation was unknown until this point. The last time the company raised money, which was nearly four years ago, it declined to discuss its valuation, according to TechCrunch. According to Crunchbase, $14.5 billion of venture funding since the start of 2019 has been put into information technology startups.
Illustration Credit: Li-Anne Dias