Rally Software shares surge in IPO debut
Rally Software shares surge nearly 30 percent in trading debut after company raises $84M
BOULDER, Colo. (AP) -- Shares of Rally Software Development Corp. soared in their trading debut Friday after the company raised $84 million in its initial public offering of stock.
The stock rose nearly 30 percent in the morning.
Rally Software sold 6 million shares for $14 apiece, more than expected. The Boulder, Colo., company had predicted that it would sell 5.8 million shares for $11 to $13 each.
The bankers managing the IPO may buy another 900,000 shares if there's heavy demand, adding to the final proceeds.
Rally Software provides "cloud" technology to help companies develop software. Cloud computing is a growing technology trend that refers to software delivered over the Internet rather than installed on company computers.
The company, which was founded in 2001 and has never posted an annual profit, said it will use proceeds from the IPO for general corporate purposes and possible acquisitions.
The stock trades under the symbol "RALY" on the New York Stock Exchange. Shares are up $3.84, or 27 percent, to $17.84 in morning trading.
