JAMF Holdings has raised $468 million after it increased the size and price of its initial public stock offering, making it the largest IPO in Minnesota.
The Minneapolis-based company helps businesses, schools, hospitals and government agencies connect and manage Apple devices in a cloud platform.
In a filing this week, the company said it would offer 16 million shares in a range between $21 and $23 per share. Instead, the company and its underwriters were able to increase the offering to 18 million shares at $26 per share.
After a customary delay to the start of trading, JAMF’s shares rose sharply Wednesday from the $26 per share offering price to $46.20 per share in late morning trading, up more than 75%.
The $468 million raised eclipsed the $462 million from the IPO of Ceridian HCM Holdings in April 2018. The Bloomington-based company also ran a concurrent private placement and an overallotment that increased total proceeds to Ceridian to $630 million.
The equity markets are regaining strength after the coronavirus pandemic nearly shut them down in April and May. According to Renaissance Capital, which tracks IPOs and offers IPO investment products, 79 IPOs have priced in 2020, down 11.2% from the same time last year. But there was a resurgence in June and the second quarter finished with 39 offerings that raised $15 billion.
“During the quarter, nearly every IPO upsized or priced above the midpoint, and IPOs averaged a 38% first-day pop, and a 61% return from offer and nearly every offering pricing above the mid-point of its offering range,” Renaissance noted in its second quarter report.
JAMF had annual revenue of $204 million in 2019, up 39% from the previous year. It reported a net loss of $32.6 million in 2019 and $36.3 million in 2018
Founded in 2002 JAMF has more than 1,300 employees and 40,000 customers and its community support network, JAMF Nation, boasts more than 100,000 members.
JAMF is expected to recieve $319.7 million in net proceeds from the offering and said in its offering documents it would use proceeds to pay down long-term debt and for general corporate purposes.