Software Provider for CIOs Apptio is Tech's Latest Hot IPO
Apptio Inc., which makes cloud software for chief information officers, surged in its trading debut after the company raised $96 million in its initial public offering.
September 26, 2016
By Pino Vallejo
Apptio Inc., which makes cloud software for chief information officers, surged in its trading debut after the company raised $96 million in its initial public offering.
The shares climbed 43 percent to $22.88 at 1:46 p.m. in New York, giving the company a market value of about $853 million. Apptio sold 6 million shares for $16 apiece, according to data compiled by Bloomberg, above the $13 to $15 marketed range.
In the course of its roadshow to market the offering, Apptio pitched both the merits of its products, which help CIOs track, plan and analyze technology investments, and a new software category. Apptio says it pioneered Technology Business Management, or TBM, a business management system for information technology leaders.
In the early days of the company, Apptio convinced venture capital firm Andreessen Horowitz to shell out its first investment in exchange for a private stake in Apptio. Apptio also started a TBM Council made up of CIOs and runs a set of conferences to drum up business.
Bloomberg LP, the parent of Bloomberg News, is an investor in Andreessen Horowitz.
Apptio, whose rivals include VMware Inc. and ServiceNow Inc., as well as custom products and spreadsheets, saw total revenue climb 21 percent to $129.3 million in 2015. About three-quarters of sales come from subscription products. The company, which hasn’t posted a profit, expects its revenue growth rate to decline, its prospectus shows. The loss widened to $41 million last year.
Goldman Sachs Group Inc., JPMorgan Chase & Co. and Bank of America Corp. led the IPO. The stock is listed on the Nasdaq Global Market under the symbol APTI.
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