ForeScout Technologies saw its shares spike 16% during intraday trading after going public on Friday. After pricing at the top of the range at $22 per share, the stock was hovering above $25 midday.
The Internet of Things security company also increased the size of its IPO and raised about $116 million after selling 5.3 million shares.
ForeScout helps businesses and government agencies monitor the devices connected to their networks. It can help with all internet-connected devices, ranging from smart TVs to voice assistants like Alexa. It also works with machines at hospitals and airports.
ForeScout CEO Michael DeCesare told TechCrunch that ForeScout aims to "give organizations visibility into everything that’s on their network." He said that ForeScout has been benefitting from the increasing number of connected devices. "It’s really only been the last few years that organizations have really started en masse to bring other use cases and devices on their networks."
ForeScout brought in $167 million in revenue last year, compared to $126 million for 2015. Losses grew to $75 million in last year, up from $27 million in 2015.
"We are on a path towards profitability," said DeCesare.
Amadeus Capital had the largest ownership stake at 19.6 percent, prior to the IPO. Accel had 15.2 percent, Pitango had 14 percent and Meritech Capital Partners had 13.4 percent. The company raised at least $125 million, dating back to 2000.
Theresia Gouw, co-founder of Aspect Ventures, said she invested because she "saw the value of ForeScout's agent-less approach to cybersecurity from the very start." She added that "with the billions of IoT connected devices being added to the IT networks, ForeScout provides unparalleled visibility to see where security is needed." As of last year, ForeScout was said to possess a $1 billion valuation. The IPO valued ForeScout at just above $800 million.
This is what’s become known as a “down round IPO.” Some investors had built-in protections and it looks like Wellington will be granted additional shares to make up for an IPO priced at a lower price than where it invested.
When asked about this, DeCesare said "I hardly pay attention to it and neither do our investors."
Early this year, we broke the news that ForeScout had filed confidentially. The company had taken advantage of a JOBS Act provision that allows businesses to submit filing updates without added scrutiny in the months leading up to an IPO.
The company is listing on the Nasdaq, under the ticker “FSCT.” Morgan Stanley and J.P. Morgan have managed the Wilson Sonsini and Goodwin Procter were the legal teams on the IPO.
This article originally appeared on TechCrunch.