Shares of market software company Hubspot (NYSE:HUBS) rose 18% in their debut on the New York Stock Exchange Thursday after raising $125 million in an IPO.
The company priced shares at $25, above the proposed range of $22 to $24. The stock traded between $29 and $33 on its first day of trading, closing at $29.61
“We’ve been thinking about doing it for eight years,” said CEO Brian Halligan about the timing. He says that they waited until achieving the $100 million revenue run rate milestone. Hubspot’s revenue for the first six months of the year was $51.3 million, though it is not yet profitable.
Launched in 2006, the Boston-based company says it has over 11,500 customers and partners with over 2,000 agencies. Its marketing platform helps with SEO, social media and analytics, among other services.
Halligan says that the capital raised from the offering will go towards international expansion and small acquisitions. He says he is pleased with the half dozen purchases the company has made so far.
Hubspot previously raised over $100 million in venture capital from General Catalyst Partners, Matrix Partners, Sequoia Capital and others. General Catalyst is the largest shareholder, owning 23% of the company post-IPO.
Just last week, another Boston internet company, Wayfair, completed its IPO. Halligan says he’s “very excited about it.” Up until now, “Boston’s been missing big anchor companies that can really grow” the region’s tech scene in the way that Google and Apple have done in Silicon Valley. He thinks that Wayfair and HubSpot can be those companies for Boston.