Shares in Dutch open-source search startup Elastic skyrocketed as much as 106 per cent in its first day of official trading on the New York Stock Exchange yesterday, bucking the trend for tech stocks on Wall Street.
The search and data analytics software firm, whose main product Elasticsearch powers technology behind big names such as Uber and Tinder, closed the day at $70 per share, a rise of 94.4 per cent from its initial pricing of $36.
The listing raised approximately $252m, doubling the firm's expected market capitalisation to reach $4.9bn (£3.7bn).
Elastic chief executive Shay Banon told City A.M. the firm was "excited" about the reception it received from investors, but that yesterday was "just one day" in the company's history.
If you’re a tech company building good products that customers need, if you have the fundamentals that investors are looking for, that still matters. What we can clearly see is that the IPO window is open [for tech companies] right now.
Originally from the Netherlands but now based in California's Silicon Valley, Elastic's debut came despite a broader downturn for the tech sector as the trademark S&P 500 tech index fell 1.7 per cent.
The bumper listing comes as new tech companies on the London Stock Exchange ended a troubling week, after peer-to-peer lender Funding Circle's much-anticipated listing produced disappointing results.
When it first filed in September, Elastic estimated that it would price its shares between $26 and $29 per share. This was then increased to between $33 and $35 per share on Monday, before rising again to $36 per share on Thursday evening.
"Looking ahead, we’re going to keep executing and building great products that our customers need and love," added Banon. "We’re very happy to be public, and we feel that it is an important maturity event on our journey to build a successful company."