Workday Inc. (NYSE: WDAY) began trading on the New York Stock Exchange today and shares of the enterprise software company soared early. The stock was trading up 73% to $48.50, after pricing at $28 a share, above its proposed range of $24 to $26.
The Pleasanton, Calif.-based company was expected to raise up to $546 million in the IPO, based on it initial price range. Workday’s Class A shares began trading today. Net proceeds from the initial public offering are intended to be used for working capital and other general corporate purposes. In addition, a portion of the net proceeds may be used for acquisitions of complementary businesses, technologies or other assets.
Workday’s Class A and Class B shares are identical, except for voting and conversion rights. Each Class A share is entitled to one vote while each Class B share is entitled to ten votes and is convertible into a Class A share at any time. Co-founders David Duffield and Aneel Bhusri, together with their affiliates, will continued to hold about 67% of the voting rights after the offering.
Morgan Stanley and Goldman Sachs are leading the offering, but the underwriting syndicate is huge: Allen & Co., J.P. Morgan, Cowen & Co., JMP Securities, Pacific Crest, Wells Fargo and Canaccord Genuity.