UPDATE 2-Ireland's FleetMatics soars in U.S. market debut

* Shares close up 31 pct

* BofA Merrill Lynch, Barclays Capital among othersunderwriting the IPO

* IPO raises $133 mln

(Adds FleetMatics shares closing price)

By Neha Dimri

Oct 5 (Reuters) - Shares of FleetMatics Group Plcrose as much as 37 percent in their market debut as thecompany's niche software business stood out in an otherwiselackluster IPO market.

The Irish fleet management software provider had priced itsinitial public offering of 7.8 million shares at the high end ofits expected price range of $15 to $17 each, raising about $133million.

FleetMatics, whose rivals include Trimble Navigation Ltd, offers GPS fleet tracking software to small andmedium-sized businesses that own fleets of commercial vehicles.

"It is a software services company, cloud based and a leaderin a fragmented market. They have just started to make money andits revenue is based on subscription," said Francis Gaskins, apartner at IPODesktop.com.

As of June 30, the company had more than 16,000 customers,who use its software and services in 281,000 vehicles. Itssubscription revenue rose 37 percent to $58.4 million for thesix months ended June 30.

"Their market is small and medium-sized business, and thecompany isn't going after the big business. I don't see anyother software company with that focus," Gaskins said.

FleetMatics, the portfolio company of Investcorp SA, sells its products under both the FleetMatics andSageQuest brands.

The company's strong debut comes after a string of poorperformances in the IPO market this week.

Both Apollo Global Management-backed Berry Plastics GroupInc and theft protection services provider LifeLock

fell in their debuts, while dining and entertainmentcompany Dave & Buster's Entertainment Inc withdrew its offeringciting a volatile market.

BofA Merrill Lynch, Barclays Capital, RBC Capital, StifelNicolaus and William Blair were the underwriters forFleetMatics' offering.

Shares of the Dublin-based company closed up 31 percent at$22.30 on Friday on the New York Stock Exchange. They touched ahigh of $23.21 earlier in the day.

(Reporting by Neha Dimri in Bangalore; Editing by Maju Samuel)

((Neha.Dimri@thomsonreuters.com)(within U.S. +1 646 2238780)(outside U.S. +91 80 4135 5800)(Reuters Messaging:neha.dimri.thomsonreuters.com@reuters.net))