SSN stock jumps 29% on opening day
By: SGN Staff
It would be hard to imagine a better opening day for Silver Spring Networks' long-awaited IPO on the New York Stock Exchange Wednesday. With a price initially set at $17 per share (in the middle of its $16-$18 range), the stock opened at $22, a hefty 29% bump, according to reporting by VentureBeat.
SSN had expected to raise $50-$70 million with the IPO, but it is bringing the smart grid company $81 million in fresh capital, as a result of selling 4.75 million shares â€“ a million more than the amount originally allocated, the news report said.
The stock was later trading at $21 later in the day â€“ still 23% over the initial price.
The apparent success of the IPO could be good news for the sector, not just SSN. As Jesse Berst, Smart Grid News founder and chief analyst, noted in a column when the terms of the IPO were announced in late February, "A successful offering will be a signal that the sector is strong enough to deserve additional attention from investors. It's one of those self-fulfilling prophecies. If they think it's worth their time, more money will flow in, boosting the sector and fulfilling their expectations."
The company first filed for the IPO in July 2011 with the expectation of raising $150 million. Click the links below for more news coverage on SSN and the evolution of its IPO.
You might also be interested in ...