UPDATE 1-Ad tech provider Rocket Fuel shares more than double in debut
* Shares double in debut
* Raises about $116 million from the IPO
(Adds details, analyst comment)
Sept 20 (Reuters) - Shares of advertisement technology company Rocket Fuel Inc more than doubled in their debut as investors flocked to grab a piece of the company that has shown impressive revenue growth.
The company, which helps customers place their ads on websites and mobile networks, sold 4 million shares at the top end of its price range of $27-$29 per share, raising $116 million.
Rocket Fuel shares touched a high of $62.50, valuing the company at $2.03 billion. About 3.9 million shares changed hands by 11:55 AM, making them one of the most heavily traded stocks on the Nasdaq on Friday.
"Rocket Fuel is in a hot area combining artificial intelligence and Big Data-driven predictive modeling," said Jay Ritter, an IPO expert at the University of Florida.
Investors feel that Rocket Fuel has a winning technology and are optimistic that the company will be able to grow and become profitable, he said.
Redwood City, California-based Rocket Fuel's revenue has grown dramatically since its inception in 2008, rising nearly six-fold to $106.6 million in 2012 from $16.5 million in 2010.
Net loss, however, widened to $10.34 million for the year ended December 2012, from $4.32 million a year earlier.
The company had 784 active customers, including 65 of the top 100 national advertisers and over 40 Fortune 100 companies as of June 30, its filing showed.
Rocket Fuel has raised over $76 million in funding from investors including Mohr Davidow Ventures, Northgate Capital and Summit Partners.
Shares of Rocket Fuel were up at $56.46 in afternoon trade.
Shares of cybersecurity firm FireEye Inc also more than doubled in their debut as investors rushed to buy shares in the company that helps businesses fend off hackers.
(Reporting by Avik Das in Bangalore; Editing by Joyjeet Das and Sriraj Kalluvila)