Tableau Software and Marketo Surge in U.S. Stock Market DebutsAri Levy and Lee Spears
Tableau Software Inc. and Marketo Inc. surged in their stock-market debuts after raising a combined $333 million in initial share sales.
Tableau, the provider of digital-charting tools, jumped 64 percent to $50.75 at the close in New York, after pricing an increased number of shares yesterday at $31 each, above the marketed range. Marketo, which sells software for marketing automation, climbed 78 percent to $23.10 from its $13 initial public offering price.
The companies join a crop of recent business-technology providers to thrive on the public markets. Workday Inc. and ServiceNow Inc. have more than doubled since their debuts last year, while Palo Alto Networks Inc. has gained 34 percent. Oracle Corp. bought Eloqua Inc., Marketo’s biggest competitor, earlier this year for about $871 million, more than twice the valuation it garnered in its August IPO.
“A new class of nimble, innovative companies have emerged in enterprise software to capitalize on new trends in big data and cloud computing,” said Quentin Gallivan, chief executive officer of data-analytics company Pentaho Corp., in an e-mail.
Tableau and existing shareholders yesterday sold 8.2 million shares for $31 each after offering 7.2 million for $28 to $30. The Seattle-based company, listed on the New York Stock Exchange under the symbol DATA, raised $254.2 million, the largest U.S. tech IPO this year.
Marketo, based in San Mateo, California, raised $78.8 million, pricing 6.06 million shares at $13 apiece, the top of the marketed range. The stock is listed on the Nasdaq Stock Market.
Goldman Sachs Group Inc. and Morgan Stanley led the Tableau offering, while Goldman Sachs and Credit Suisse Group AG led the Marketo IPO.