Tech Drivers
Tech Drivers

DocuSign starts trading on Nasdaq after raising $629 million in IPO

Key Points
  • DocuSign's initial stock price on Nasdaq was $38 per share.
  • DocuSign priced on Thursday at $29 per share, which is higher than the most recent range of $26 to $28 per share.
  • The company's implied valuation in the initial public offering was well above its 2015 valuation.
Docusign CEO on IPO

DocuSign shares zoomed more than 30 percent higher on Friday in the stock's first trading day on the Nasdaq.

Shares opened at $38 apiece, well above the $29 Thursday night pricing. The stock held gains through the day, closing at $39.73, up 37 percent.

The company, which makes software for digitally signing documents, raised $629.3 million in its initial public offering after pricing shares at $29. The move provides another proof point for continuing market interest in new technology stocks.

DocuSign's S-1 filing, which initiates the process of going public, appeared online on March 28. On April 17 the company revised the filing and estimated that its stock would price between $24 per share and $26 per share. And on Wednesday DocuSign revised it again and bumped up the range to $26 per share to $28 per share.

The company is trading on the Nasdaq under the ticker symbol "DOCU."

DocuSign said Thursday that it sold 21.7 million shares of its stock and now has 152.1 million outstanding shares, giving the company an implied valuation of $4.41 billion, above the $3 billion valuation that it reportedly picked up in 2015.

CEO Dan Springer told CNBC that while the company has a history of operating losses, he was feeling "pretty good" about the company's future profitability. The IPO money will be spent on doing the same things the company has done thus far, including "major investments" infrastructure and security, and in making the company a "the best place to work" to attract top talent, Springer told CNBC's "Squawk Alley" on Friday. He also said there's a huge opportunity for DocuSign in international expansion.

San Francisco-based DocuSign was founded in 2003. Its primary competitor is Adobe.

It's been named to CNBC's Disruptor 50 list three times. The 2018 list of startups revolutionizing industries will be revealed in late May.

DocuSign is the eighth cloud or enterprise software as a service company that has sought to go public this year, Rohit Kulkarni of SharesPost wrote in a blog post on Thursday. Ceridian, Dropbox and Zuora are among the tech companies that have gone public in recent weeks, and SmartSheet went public this week alongside DocuSign.

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— CNBC's Sara Salinas and Anita Balakrishnan contributed to this report.