Sumo Logic surges in New York debut, robust demand for new listings continues

(Reuters) – Shares of big data firm Sumo Logic Inc SUMO.O jumped 21% in their Nasdaq debut on Thursday, a day after Snowflake Inc’s SNOW.N blockbuster debut marked the high point of a frenetic year for U.S. initial public offerings.

Sumo Logic opened at $26.64 per share, giving it a valuation of $2.63 billion, compared with the IPO price of $22 per share.

This comes a day after Warren Buffett-backed Snowflake’s shares more than doubled on debut after the data warehouse company raised $3.36 billion in the biggest U.S. listing of 2020.

Sumo Logic, which raised $325.6 million in its upsized IPO, is the latest successful debut in a hot IPO market, where demand for new listings remains high after coronavirus-induced market volatility forced many companies to halt their listing plans earlier this year.

“We were evaluating the early effects of COVID-19 on the market … all along we were preparing that in the event that the market changed, we could make the decision to go public right away,” Chief Executive Officer Ramin Sayar told Reuters.

For the year ended Jan. 31, the company posted a bigger loss of $92.1 million from $47.8 million a year earlier. Revenue for the same period jumped about 50%.

Entities affiliated with venture capital firm Greylock will own 19% of Sumo Logic after the offering, while those linked with current stockholder Tiger Global Management indicated an interest in purchasing up to 10% of shares at the IPO price, a company filing showed earlier this month. (bit.ly/32qTNVo)

Morgan Stanley, J.P. Morgan, RBC Capital Markets and Jefferies LLC served as lead underwriters for the offering.

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