Freshworks’ share price surges 21% over IPO, market cap at $12.2 billion
in its Nasdaq debut on Wednesday after shares opened 21% above the IPO price, indicating strong demand for firms that have thrived during the pandemic.
Shares of the Salesforce rival opened at $43.50 apiece compared with the
IPO price of $36.
Freshworks joins a wave of listings from the software and technology sector, most of which have been welcomed by investors who see room for growth as companies increasingly embracing the hybrid work model drive up demand for such products.
The San Mateo, California-based company, launched from Chennai in India, has a suite of products that helps businesses with customer management, such as a messaging platform and an artificial-intelligence powered chatbot for customer support.
Founded by Girish Mathrubootham and Shan Krishnasamy, Freshworks raised its first round of funds in 2011 and got its first customer, the Atwell College in Australia, in the same year. Venture capital firm Accel and New York-based technology investment giant Tiger Global Management were early investors in the company.
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Freshworks has become the first Indian software products company to list on Nasdaq, raising more than $1.03 billion from investors through its initial public offering at a market cap of $10.13 billion.
Freshworks said its technology is used by more than 50,000 companies, including high-profile names such as Delivery Hero SE, Swedish payments firm Klarna, Cisco Systems Inc. and General Electric Co.
On Tuesday, the company
priced its IPO above the top end of the range to raise $1.03 billion. It had earlier raised its price range, aiming to sell 28.5 million shares at $32-34 each. Morgan Stanley, JPMorgan and BofA Securities were the lead underwriters for the offering.