SecureWorks' stock whipsawed Friday on its first day of trading as a public company.
Shares of the cybersecurity company, listed under the ticker "SCWX," opened lower at $13.89, but quickly recovered, last trading slightly higher above $14 on a day the Nasdaq traded down 1 percent. This is the first initial public offering (IPO) of a U.S. technology company in 2016.
SecureWorks priced at $14 a share Thursday night, below the expected range of between $15.50 and $17.50, sources told Reuters. The firm, formerly owned by Dell, is going public at a time when other technology firms are increasingly favoring the private market.
Only 51 IPOs priced in the second half of 2015, the smallest batch since 2012, according to Proskauer's Capital Market Group 2016 IPO study. The annual aggregate deal value of $30.1 billion was the lowest since 2009, with companies seeing "down rounds" and fewer "mega IPOs," the report found.
This time last year, six technology companies had already priced their IPOs, raising a total of $1.6 billion, according to Thomson Reuters data.
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At its lowest, the IPO valued SecureWorks at a little over $1 billion, according to Reuters. The company's operating loss nearly doubled to $72.4 million in fiscal 2015 as headcounts ballooned, while revenue climbed 30 percent $339.5 million, according to filings seen by Reuters.
But SecureWorks' costs will scale over time as the company completes its expansion into new countries like Japan, Australia, Singapore, India, France and Germany and moves beyond its core customer base of financial services, Michael Cote, SecureWorks president, CEO and director, told CNBC's "Squawk Alley" Friday.
"We made a conscious effort to move across verticals, and across client sizes," Cote said. "We're going to make a continued push, because the more verticals we are in, the more client sizes we see, the more data we can get, the better we can do our job."
— Reuters contributed to this report.