solarwinds
NEW YORK (Reuters) - SolarWinds Inc (SWI.N) stock rose 13 percent in its tradin
g debut Wednesday, putting it on pace to be the sixth consecutive U.S. IPO to have a first-day jump.
After trading as high as $15.16, SolarWinds shares eased by mid-morning on the New York Stock Exchange, changing hands for $14.18, or about 13 percent over the initial public offering price.
"Tech stocks have been mixed this year, but firms realize they have to be productive so they are renewing their equipment," said Linda Killian, a principal with Connecticut-based investment firm Renaissance Capital.
"There was scarcity to this deal," Killian added, explaining SolarWinds' strong pricing and debut.
The company's strong profitability was also a major draw for investors, another analyst said.
"For every dollar of added top line revenue, SolarWinds gets a bigger percentage of profit increase than their competitors, who have lower profit margins," said Francis Gaskins, president of research firm IPO Desktop.
g debut Wednesday, putting it on pace to be the sixth consecutive U.S. IPO to have a first-day jump.After trading as high as $15.16, SolarWinds shares eased by mid-morning on the New York Stock Exchange, changing hands for $14.18, or about 13 percent over the initial public offering price.
"Tech stocks have been mixed this year, but firms realize they have to be productive so they are renewing their equipment," said Linda Killian, a principal with Connecticut-based investment firm Renaissance Capital.
"There was scarcity to this deal," Killian added, explaining SolarWinds' strong pricing and debut.
The company's strong profitability was also a major draw for investors, another analyst said.
"For every dollar of added top line revenue, SolarWinds gets a bigger percentage of profit increase than their competitors, who have lower profit margins," said Francis Gaskins, president of research firm IPO Desktop.
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