Workday shares jump in second day of trading
Shares of Workday Inc. jumped Monday in its second day of trading as a public company.
THE SPARK: Workday debuted on the New York Stock Exchange Friday under the "WDAY" symbol. The company raised $637 million in its IPO, selling 22.8 million shares for $28 each, above the expected range of $24 to $26 per share.
Investors clamored for shares of the company, sending its stock price up 74 percent to close Friday at $48.69, which is the fifth-biggest percentage gain on the first day of trading for any IPO this year.
Workday's gains Monday appeared to be a continuation of that popularity.
THE BIG PICTURE: Workday's software helps companies keep track of payroll and other human resources functions. It competes with giant corporations in enterprise software like Oracle Corp. and SAP AG.
While a string of technology IPOs last year and earlier this year revved up the IPO market, the flop of Facebook Inc.'s debut in May and growing uncertainty about the world economy weighed on deals during the summer. In the fourth quarter, however, IPOs seem to have become more attractive for investors.
SHARE ACTION: Workday's shares increased $3.83, nearly 8 percent, to $52.52 by midday, after hitting a high of $52.95 earlier in the session.