LogMeIn, a venture-backed startup that offers remote connections to computers, on Wednesday jumped 29 percent in its trading debut on the Nasdaq.
Underwriters on Tuesday priced nearly 6.7 million shares at $16, the high end of the offering range, to raise about $107 million. In the first day of trading, shares advanced $4.61 to $20.29, giving LogMeIn a market capitalization of $441 million.
LogMeIn’s service does what its moniker suggests. It allows people to log in to PCs, only from other computers via Internet. This is particularly useful for IT departments to remotely repair computers they service for companies.
The startup has a free service and various subscription ones. The company’s paying user base has jumped to 188,000, as of March 31, from 122,000 a year earlier, according to U.S. Securities and Exchange Commission documents.
The company's free service is a compelling alternative to the likes of Symantec-owned PCAnywhere and Citrix Systems unit GoToMyPC, among others.
“I used to pay for GoToMyPC, but once I found out about LogMeIn, I canceled my paid subscription and was just as happy,” said James Wong, co-founder and CEO of Avidian, a startup that provides CRM software as a plug-in on Outlook.
The IPO marks the sixth U.S. venture-backed company to go public this year. The offering comes after those from DigitalGlobe, OpenTable, BridgePoint Education, SolarWinds, and MediData Solutions, which went public last week.
The Woburn, Massachusetts, company became profitable in September 2008, reporting $2.1 million in net income, according to SEC filings.
LogMeIn attracted $30 million in funding from investors including Intel Capital, 3TS Capital Partners, Integral Capital Partners, Prism VentureWorks, and Polaris Venture Partners.
JP Morgan and Barclays Capital were the lead underwriters in the offering. LogMeIn trades under the ticker symbol “LOGM.”