In the latest in a long string of technology IPOs, Workday (NASDAQ:WDAY), 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 (NASDAQ:FB) 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 (NYSE:ORCL) 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.
Eric Volkman owns shares of Facebook. The Motley Fool owns shares of Facebook and Oracle and has options on Facebook. Motley Fool newsletter services recommend Facebook. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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