Software-as-a-Service companies have shown a tremendous success on Wall Street—since July, the stock of Human Resources Management pioneer Salesforce.com rose a whopping 828% a share. Stock in enterprise software company Workday shot up 73% on opening day of trading.
The success of the wildly popular Salesforce.com Inc., as well as the Workday IPO from earlier this year, are indications that Software-as-a-Service (SaaS) is an attractive business model to investors—and getting lots of love on Wall Street.
SAN FRANCISCO (MarketWatch) – Shares Workday Inc. soared Friday as the enterprise software company began trading on the New York Stock Exchange. The stock was trading up 73 % to $48.50 after pricing at $28 a share, above its proposed range of $24 to $26.
The Pleasanton, Calif.-based company’s initial public offering initially set a price range of $21-$24. Workday provides cloud-based software used by businesses to manage employee data and processes.
PLEASANTON, CA – Workday, Inc. (NYSE: WDAY), a leader in enterprise cloud applications for human resources and finance, announced the pricing of its initial public offering of 22,750,000 shares of its Class A common stock at a price to the public of $28.00 per share.
The underwriters have been granted a 30-day option to purchase up to an additional 3,412,500 shares of Class A common stock from Workday to cover over-allotments, if any. The shares are expected to begin trading on the New York Stock Exchange on October 12, 2012 under the symbol “WDAY.”
Enterprise software may be flying under the radar of most investors, but that appears to be changing—and changing very soon.
Facebook’s initial offering stumble earlier this year may be the reason investors are keeping mum about “cloud-based” service companies. It is also why a small company called Workday filed for an IPO this week with little fanfare.