In the latest in a long string of technology IPOs, Workday (WDAY 0.52%), a cloud-computing services company focused on the corporate market, soared nearly 75% in its first day as a publicly traded entity. Its NYSE-listed stock closed the day at $48.69, more than $20 higher than its issue price of $28. All told, the IPO raised $637 million for the company, which is the highest number for a new tech issue since Facebook's (META 0.14%) large-scale though disappointing debut earlier this year.
As is commonplace with IPOs in the sector, Workday is a relatively new company. It was founded in 2005 by several of PeopleSoft's top executives. Those officials lost a hostile-takeover battle with Oracle (ORCL -0.30%) for control of the firm, and as a result PeopleSoft was folded into Oracle's operations.
Although Workday has posted impressive revenue gains of late, it has never turned a profit, and management does not expect it to do so "for the foreseeable future," according to the company's registration statement.Workday posted revenues of just under $120 million and a net loss of $47 million in the first six months of 2012.
