Luxoft surges in 1st day of trading on the NYSE
(AP)—Shares of Luxoft, which develops and maintains software for businesses and other enterprises, surged in their first day of trading on the New York Stock Exchange.
The stock gained $3.38, or about 20 percent, to close at $20.38 on Wednesday, having risen as high as $21.70 during the session.
Luxoft Holding Inc., based in Zug, Switzerland, said that the offering of about 4.1 million shares was priced at $17 per share, the midpoint of the expected range of $16 to $18 per share. The IPO raised almost $69.7 million.
Both Luxoft and its parent company, IBS Group Holding Ltd., offered 2.05 million shares each. IBS is a software development and information technology services provider in Eastern Europe. Luxoft won't receive any proceeds from the shares sold by IBS.
Luxoft said in a regulatory filing that it anticipates net proceeds of about $31.1 million, which it plans to use for working capital and other general corporate purposes. The underwriters are being given a 30-day option to buy up to an additional 613,810 shares to cover any excess demand. If fully sold, that would boost Luxoft's total net take to about $35.9 million.
For the year ended March 31, Luxoft had net income of $37.5 million on revenue of $314.6 million.
The stock is trading under the "LXFT" ticker symbol.
The offering is expected to close on July 1.
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