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Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research Sells Shares Above Expected IPO Range, Raising $651 Million

By Keith Noonan - Dec 9, 2020 at 1:05PM

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Excitement surrounding the enterprise software stock seems to be building. ( AI 6.12% ) raised $651 million in funding through the sale of 15.5 million shares at a price of $42 per share on Tuesday, according to a Bloomberg report. The sale values at roughly $4 billion, taking place at a price significantly higher than its previously-announced range of between $36 and $38 per share.

The artificial intelligence (AI) software specialist begins trading under the ticker "AI" on the New York Stock Exchange (NYSE) today.'s initial public offering (IPO) is being led by JPMorgan, Morgan Stanley, and Bank of America, and the company previously disclosed that Microsoft and Spring Creek Capital would be major early investors. 

Graphs and a man using a laptop.

Image source: Getty Images. was founded by former Oracle executive Tom Siebel and is providing AI-powered software for enterprises. It operates on a software-as-a-service model (SaaS), providing a variety of applications that help businesses to gather and analyze data to better inform important decisions. It also offers a streamlined app development suite that allows developers to drag and drop desired features into their projects. These tools can prove very valuable for companies aiming to rapidly develop and deploy new apps, and there's a good chance that demand for AI-based development and data analysis software will see strong growth over the long term.  

The market for promising tech IPOs has been very hot this year, and it wouldn't be surprising to see's valuation surge out of the gate. The stock remains a speculative investment this early in the game, but the company is being led by a proven executive team and is operating in a potentially explosive growth market. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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