Demandware was founded in 2004, over the past 12 weeks ended March 31, 2011, the company’s book sales were $41 million. Demandware Inc, the fifth cloud computing-based software company to join the IPO wave since December, is expected to see strong pricing and trading during its offering next week.
The Burlington, Massachusetts, firm, which makes software businesses use to maintain their e-commerce sites, plans to raise an estimated $74 million during its IPO under the new ticker "DWRE" on the New York Stock Exchange. It plans to offer 5.5 million shares in a range of $12.50 to $14.50.
Demandware follows a string of successful public offerings from other cloud-based technology companies; all priced within or above their expected range, and then saw their shares soar.
"Timing is everything, and if you're a cloud operator the timing is perfect," said independent IPO analyst Tom Taulli. "We've had a lot of hunger for cloud deals as it has become a huge trend for businesses."
Cloud computing allows companies to access information on the Internet from remote servers rather than from their own computers in-house, which proponents claim helps cut costs.
As demand from businesses for this type of technology has climbed, so has interest from investors hoping to tap a global market expected by information technology research company Gartner Inc to reach $148.8 billion by 2014.
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