The stock price of Textura Corp (NYSE:TXTR) surged as much as 68 percent during its initial public offering (IPO) at the New York Stock Exchange today. The stock went up from its offering price of $15 per share to as high as $25.18 per share.
Textura Corp (NYSE:TXTR) Stock Trading:
The stock is trading at $21.38 per share, up by more than 41 percent on Friday, around 2:30 PM.
Textura Corp (NYSE:TXTR) provides on-demand business collaboration software to increase the efficiency and risk management capabilities of companies in the commercial construction industry. More than 3,000 general contractors, property developers, and architects in North America use its software. The software maker offered 5 million shares of its common stock in its IPO.
A report from Reuters quoted Francis Gaskin, a partner at IPODesktop, regarding the bullishness of investors towards enterprise start-ups over the past year. Gaskin said, “Investors are very hungry for cloud software-as-a-service companies that have top-line revenue increases and that are leaders in their defined market, which this company is.”
Textura Corp (NYSE:TXTR) posted $21 million revenue last year. The company also reported a net loss of $18.8 million. Textura expects to benefit from a positive outlook in the construction industry.
Investors were disappointed with the performances of internet companies such as Facebook Inc (NASDAQ:FB), Groupon Inc (NASDAQ:GRPN), and Zynga Inc (NASDAQ:ZNGA) because the stock value of each company declined significantly after the IPO.
Other software companies with strong IPOs are Palo Alto Networks Inc (NYSE:PANW), a firewall security company and Workday Inc (NYSE:WDAY). The stock price of Palo Alto Networks surged by 30 percent while Workday climbed by 70% during its IPO.
Textura Corp (NYSE:TXTR) is backed by Northwater Capital Management LLC, First Midwest Bancorp Inc., and Aon Risk Services Co. Inc.
Textura is also backed by Canadian venture capital firm Northwater Capital Management LLC, First Midwest Bancorp Inc and Aon Risk Services Co Inc, a unit of Aon PLC (NYSE:AON). Former PriceWaterCoopers consultants William Eichhorn, Howard Niden and Patrick Allin co-founded Textura Corp (NYSE:TXTR). According to them, the commercial construction industry is ready for innovation. Since its establishment, the company managed 13,000 projects worth more than $125 billion. Patrick Allin, CEO of the company believes that its “revenue opportunities are in billions…”