Deals
Cloudflare Jumps in Trading Debut After Raising $525 Million
- First-day performance shows strength of unicorns and software
- Peloton, WeWork are pending as IPOs return after summer lull
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Cloudflare Inc. rose 20% in its trading debut, improving momentum for unprofitable companies going public at valuations in the billions of dollars with other large IPOs ahead.
The software company’s performance, giving it a market value of $5.28 billion, also affirmed the appeal of the sector to IPO investors this year. Shares of the 18 software and computer security companies that have gone public in the U.S. this year have risen an average of almost 40%, compared with the 12.6% increase for all IPOs based on a weighted average.