Cloud computing firm Zuora jumped almost 43 percent in its first day of trading on the public market.
The stock opened at $20 a share, above its Wednesday night pricing of $14 a share, and held those gains to close flat on Thursday at $20.
The company listed its $154 million initial public offering on the New York Stock Exchange under the ticker symbol "ZUO."
Zuora priced its 11 million shares at $14 on Wednesday, above a revised expected range of $11 to $13. That implies a valuation of just more than $1.4 billion for the tech company.
Zuora helps businesses manage subscription services with billing and analytics offerings. It serves 950 customers in more than 30 countries and counts major investors like Blackrock and Benchmark among its backers.
CEO Tien Tzuo said the company's stock is like an "index fund of the subscription economy."
"There's a big, big secular shift going on where companies aren't selling products anymore. More and more they're subscribing to services," Tzuo told CNBC's "Squawk on the Street" Thursday. "We're the company really powering this, and we're the company uniquely positioned to benefit from this secular shift."
The company reported a net loss of $47.2 million for the year ended Jan. 31, on revenue of $167.9 million, which was up about 49 percent from a year ago.
Goldman Sachs, Morgan Stanley, Allen & Co. and Jefferies were among the underwriters for the public offering.