Video source: YouTube, CNBC Television
The company sold 28.5 million shares at $36 each to raise $1.03 billion in gross proceeds, giving the company a post-money valuation of $10.13 billion.
The stock opened at $43.50 and ended the day's trading at $47.55, up 32.1% from its IPO price. Bookruners Morgan Stanley, JPMorgan Chase and BofA Securities had been marketing the deal at a range of $32 to $34.
Freshworks joins a string of other high-profile startups from India that have gone public or announced plans to go public this year, CNN noted.
Food delivery company Zomato made its debut in Mumbai earlier this year, and fintech firm Paytm filed in June for India’s largest tech IPO on record. Flipkart, an Indian e-commerce company controlled by Walmart, is also planning a US listing soon.
Reuters noted that software IPOs have been well-received by investors over the past 18 months, as market interest remains high amid the rise of hybrid work.
Freshworks, which offers cloud-based sales, marketing and other enterprise software, was last privately valued at $3.5 billion in 2019. Its investors include Accel, Sequoia Capital India, Tiger Global Management and Alphabet’s CapitalG.
Founded 11 years ago in India, the start-up moved its headquarters to Silicon Valley several years later and now has more than 52,000 customers worldwide.
Source: Equities News