Cloud company Datadog surges 50% in U.S. market debut
Sept 19 (Reuters) - Shares of Datadog Inc, a data
analytics and cloud monitoring company, surged nearly 50% in
their market debut, after pricing its initial public offering
Datadog's shares opened at $40.35, giving it a market
capitalization of $11.69 billion. Shares rose as high as $41.44
in early trade.
The New York-based company had priced its IPO at $27 per
share on Wednesday, above its initial target range of $24-$26,
raising about $648 million, at a valuation of about $7.83
If underwriters exercise their option of buying an
additional 3.6 million shares, the gross proceeds may go up to
The provider of services for monitoring the health of
cloud-based applications counts companies such as Biogen
, Comcast, Deloitte, and Twitter
among its customers.
It competes with industry behemoths such as Amazon.com Inc's
AWS and Microsoft Corp's Azure.
Datadog is the latest in a string of listings in 2019 by
so-called software-as-a-service (SaaS) companies, including Zoom
Video Communications. Such listings have performed well
since going public as they benefit from the expansion of cloud
Datadog's revenue had nearly doubled to $198.1 million in
2018 from a year earlier. In the same period, its net loss
widened to $10.8 million from $2.6 million. (https://bit.ly/2lWaYLN)
T. Rowe Price Associates, Dragoneer Investment Group, Index
Ventures, ICONIQ Capital Management and Institutional Venture
Partners are among the lead investors in Datadog.
Morgan Stanley, J.P. Morgan and Goldman Sachs are the IPO's
(Reporting by Abhishek Manikandan in Bengaluru; Additional
reporting by Bharath Manjesh; Editing by Shailesh Kuber)
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