Pagerduty to Raise $218 Million in Above-Range U.S. IPO

(Bloomberg) -- Pagerduty Inc., which makes tools for software developers, jumped as much as 65 percent in its debut after raising $218 million in its U.S. public offering.

Shares opened at $36.75 percent in New York trading Thursday, after the company sold 9.07 million shares at $24 each. The stock closed up 59 percent to $38.25, giving the San Francisco-based company a market value of about $2.8 billion.

The first day of trading for Pagerduty, which marketed its shares for $21 to $23, was the third best this year for a U.S. IPO, according to data compiled by Bloomberg.

The company’s backers include Andreessen Horowitz, Bessemer Venture Partners and Accel Partners. In September, Pagerduty was valued at more than $1 billion after an investment led by T. Rowe Price Group Inc. and Wellington Management.

PagerDuty had a net loss of $41 million on net revenue of $118 million for the year ended Jan. 31, according to its filings with the U.S. Securities and Exchange Commission. That compares with a net loss of $38 million on net revenue of $80 million for the same period a year earlier.

The company said it has 11,212 customers in 91 countries, including a third of Fortune 500 companies.

PagerDuty was founded in 2009 and rose to become a leader of a category of software tools known as developer operations. Its service helps alert coders to crashes and other technical problems when they arise.

Morgan Stanley, JPMorgan Chase & Co., Royal Bank of Canada and Allen & Co. led the offering. The stock is trading on the New York Stock Exchange under the symbol PD.

To contact the reporter on this story: Olivia Zaleski in San Francisco at ozaleski@bloomberg.net

To contact the editors responsible for this story: Elizabeth Fournier at efournier5@bloomberg.net, Michael Hytha, Matthew Monks

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