JAMF shares soared to 96% in its debut on Wednesday after the company, which helps companies deploy Apple products, priced its IPO above its expected range.
On Tuesday, JAMF listed 18 million shares at $ 26 each, after previously increasing the range from $ 21 to $ 23. The stock rose to $ 51 on the Nasdaq, giving the company a market capitalization of approximately $ 5.9 billion. It was trading around $ 41 at noon.
It is the latest technology IPO to skyrocket, proving that investors remain thirsty for growth amid the coronavirus pandemic and that companies still leave large amounts of cash on the table as they go public. Technology IPOs have long been criticized for a process that allows bankers to give low-priced stocks to new investors, who often enjoy an immediate explosion as the issuing company raises far less money than it could. Insurance tech company Lemonade rose 139% on its first trading day earlier this month, a week after Chinese cloud software provider Agora rose 150%.
Founded in 2002, JAMF’s says its mission is “to help organizations succeed with Apple,” the most valuable American company with a market capitalization of nearly $ 1.7 trillion.
JAMF helps companies securely deploy Mac computers, iPhones, and iPads by connecting them and giving IT teams the tools to manage them. In its brochure, JAMF says it has 40,000 customers who deploy more than 17 million Apple devices.
First quarter revenue was up 37% from a year ago, to $ 60.4 million, and JAMF’s gross margin increased to 75% from 70%, as more customers turned to its subscription offering. Her net loss decreased slightly from $ 9 million to $ 8.3 million.
JAMF said that, with more people working remotely during the Covid-19 outbreak, the company is doing fewer in-person trainings and moving more online sessions, reducing revenue from services. However, more employers are transitioning to the subscription service, according to the prospect.
“We believe that our cloud-first in-house technology platforms have enabled a smooth transition to a remote work environment without any material impact on our business, underscoring the resilience of our business model,” the company said. Still, JAMF repeatedly cites the uncertainty surrounding the duration and magnitude of the broader crisis as a significant risk.
Another risk comes from Apple. Last month, the iPhone maker announced the acquisition of Fleetsmith, a four-year-old company, whose software makes it easy to configure, erase, and remotely deploy devices. JAMF said it currently views Fleetsmith as focused on small and medium-sized businesses, but could use the technology “to compete more directly with the scale and breadth of the product offerings we offer,” the presentation warns.
JAMF is primarily controlled by private equity firm Vista Equity Partners, which acquired the majority of the company in 2017 for $ 733.8 million. The company’s stake is now worth more than $ 4.5 billion, according to JAMF operations on Wednesday.
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