OSLO (Reuters) – Shares in Norway’s Pexip Holding soared by 54% in early trade on Thursday as the video conferencing company made its stock market debut after an initial public offering (IPO) that was more than 12 times oversubscribed.
The shares rose to 97 Norwegian crowns at 0710 GMT, up from 63 crowns in a sale of new and existing stock that concluded on Tuesday, now valuing the company at about 9.6 billion Norwegian crowns ($942 million).
Pexip, which competes with the likes of Zoom and BlueJeans and says it is used by the U.S. military and the German government, has registered a jump in demand for its services since the start of the novel coronavirus crisis.
Its offer of 38 million new and existing shares had amounted to 2.39 billion crowns, but investor interest in the stock had exceeded 30 billion crowns, Pexip said.
Taking advantage of its own technology, Pexip conducted an all-virtual roadshow as it sought to become the first European company to complete an IPO remotely.
As businesses rushed to video-conferencing during the COVID-19 outbreak, security of such services has come under increasing scrutiny. Pexip, however, markets itself as being more secure than rivals by allowing users to store data on a “self host” basis on private cloud or data centres.
A so-called over-allotment option could allow Pexip to issue up to four million additional shares via advisers ABG Sundal Collier, Carnegie and Pareto Securities on top of its current 99 million shares, further raising the company’s overall value.
Reporting by Terje Solsvik; Editing by Victoria Klesty and David Goodman