Riversoft makes impressive stock market debut

Network management start-up Riversoft defied the current trend of the London Stock Exchange on its floatation today as shares rose up to 40 per cent.

By midday, the shares had softened slightly to 36 per cent above their 94p launch price at 127p. This gives the company a value of around £300m. RiverSoft sold 88.3 million new shares in the flotation to raise £83m for expansion and to fund R&D. The company's software promises an interventionless management of complex IP networks. One of its backers, HP, has brought in the technology to use in its own network management software NMOS. Other heavyweight industry backers are Cisco and Intel. Riversoft's turnover this year was near £1m and showed a sharply rising trend. Customers include Barclay Global Investments, British Airways, Colt and Deutsche Bank. The company raised $50m in a first funding round from venture capitalists Apax Partners, Morgan Stanley and others. It has 200 staff in New York, London and San Francisco.