Shares of Workday, the California-based enterprise business management firm primarily known for its cloud-based human resources applications, began trading on the New York Stock Exchange this morning ($WDAY) at a price of $48.05, nearly double their initial price of $28.
That values the company at an astounding $7.4 billion, a huge jump over the $4.49 billion valuation from its original price.
The $28 share price was itself an increase of $2 over its predicted price earlier this week and $4 over its original projection. The incremental increases were made in anticipation of strong demand for the company's shares, and valued the company at about 20 times its revenue.
At the opening bell, excitement/disdain/interest was palpable:
The day is young, of course, and we'll be watching it through the day to see where it ends up at the closing bell. Stay tuned.
The company's IPO is the largest since Facebook in May 2012, and comes at a time when many companies mulling an IPO have withdrawn due to tepid demand. Market ripples are expected to affect other cloud software firms such as NetSuite, Cornerstone OnDemand, Saba Software and Ultimate Software Group.
The company was founded in 2005 by PeopleSoft founder Dave Duffield and venture capitalist Aneel Bhusri; it now has 1,550 employees and competes with Oracle and SAP.
More Workday IPO analysis on ZDNet:
- Larry Dignan: Workday's IPO: 10 things to know
- Brian Sommer: Workday IPO - The company that Oracle won't acquire?
- Dennis Howlett: Understanding Workday's IPO filing | Workday 17 tackles time tracking