California - Arabstoday
Palo Alto Networks Inc and Kayak Software Corp raised more than they sought in their initial public offerings, bolstering a revival in the market following Facebook Inc’s disappointing debut. Palo Alto sold 6.2 million shares at $42 (Dh154) each to raise more than $260 million, a statement yesterday showed. Kayak sold 3.5 million shares at $26 each, bringing its total to $91 million. Both priced the IPOs above their proposed ranges. The sales indicate the recovery in US initial share sales is building on momentum from the June IPO of software maker ServiceNow Inc, which handed a 37 per cent gain to new investors on its first day. While pricing above the range shows investors’ appetite for risk has grown, the stocks may have trouble maintaining the valuations, which were higher than peers’, said Thornburg Investment Management Inc’s Tim Cunningham. “People are open to taking on the risks of IPOs — what’s going to be more important is how these stocks trade,” said Cunningham, who helps oversee $79 billion at the firm in Santa Fe, New Mexico. “It seems like overall the quality of the deals and companies is pretty good, and I think that helps.” From: Gulfnews