Sumo Logic raised roughly $326 million through its IPO at $22 a share. On Wednesday, September 17, 2020—it’s first day of trading on the Nasdaq—its stock closed at $26.88. Twenty-two percent above IPO price.
While IPOs have recently been criticized for being mispriced, leading to first-day spikes as high as 100 percent above their IPO prices, Sumo Logic’s first day of trading alternatively seems well-aligned with its pricing.
Before settling on the IPO price, the cloud management software company had set a range of between $17 and $21. Shares opened Thursday at $26.64 under the SUMO ticker symbol. Accel, IVP, DFJ, Greylock Ventures and Sapphire Ventures are some of those poised to win most in the IPO.
As a private company, Sumo Logic raised more than $340 million in funding. Most recently with a $110 million Series G round in May 2019.
In an interview with Crunchbase News, CEO of Sumo Logic Ramin Sayer said that preparations to go public had long been in the works. “You can’t in a span of a couple months decide to go public,” he said. Although the pandemic put a temporary wrench in plans, Sayer said that after taking care of employees and customers amidst the ensuing uncertainty, the company began looking for signs that more people would gravitate towards digital and cloud-based solutions.
Sayer also says the game plan for Sumo doesn’t change now that it’s public: “One day, one week, one month, one quarter: It doesn’t matter, we’re playing the long game.” He asserted that Sumo Logic will remain focused on its people, IT and products, and going after new markets and new verticals.