FireEye, Rocket Fuel more than double in debut
Shares in cybersecurity firm FireEye more than doubled in their trading debut on Friday following their initial public offering as investors rushed to snap up shares in the fast-growing company that helps businesses fend off hackers. Shares of advertisement tech company Rocket Fuel also more than doubled in its debut, valuing the company at more than $2 billion, a day after it priced its IPO at the top end of its revised price range.
FireEye shares jumped to $43.10 as they opened trading on Nasdaq. The company sold some 15.2 million shares at $20 per share, above its proposed price range.
FireEye's revenue jumped nearly seven times to $83.3 million between 2010 and 2012, while its net losses widened to $35.8 million from $9.5 million during the same period.
(Read more: JPMorgan likely to lead Chrysler IPO)
"The valuation is astronomical, but so is the revenue growth rate," said Tim Ghriskey, chief investment officer with Solaris Asset Management. "For many investors this is nosebleed territory - especially since the stock has opened at twice the IPO price."
The IPO price valued FireEye at about $2.3 billion. The company raised about $304 million from the offering. All the shares in the IPO were sold by the company.
(Read more: Twitter IPO: 'Grey market' indicates appetite high)
Rocket Fuel soars, which delivers Web-based video advertisements, raised $116 million by selling 4 million shares at $29 each. Rocket Fuel had set a price range of $27-$29 per share for the IPO.