Freshworks Inc. stock increased by more than 30% on its first day of trading on Wednesday, after the software company raised more than $1 billion in an initial public offering.
Freshworks FRSH, +32.08 percent shares started at $43.50 on Wednesday morning, up more than 20% from their initial public offering price of $36. They then soared to an intraday high of $48.75. The stock completed the first day of trade at $47.55, up 32%.
The company's projected range of $32 to $34 a share, which had already been increased from its original $28-to-$32-a-share range, was already exceeded on Tuesday. Freshworks raised $484 million in venture capital investment rounds over a decade, so the $1 billion+ raised in the sale is more than quadruple.
Freshworks' sales have shifted from 60 percent of SMB clients to 60 percent of midmarket customers during the last five years, according to him.
More than a quarter of Freshworks' 52,500 paying customers have contributed more than $5,000 in yearly recurring income as of June 30. 23.8 percent of its 48,500 clients donated $5,000 or more by the end of 2020, compared to 21.4 percent of its 40,000 consumers by the end of 2019.
As revenue has increased, the firm has been able to reduce losses. For the first six months of 2021, the company reported sales of $168.9 million, a loss of $9.8 million, compared to $110.5 million and a loss of $57.1 million for the same period in 2020.