24/7 Wall St.

Demandware, Inc. (NYSE: DWRE) priced its IPO today and the premium price of $16.00 was above the $12.50 to $14.50 per share price range.  24/7 Wall St. wanted to track this one throughout the trading day for a blow by blow since the IPO finished up nearly 50% from the pricing.  Here are the live trading comments and color that we posted throughout the day along with its first day trading chart.

UPDATE 9:40 AM EST: Shares are indicated to open in a range of $22 to $25… Go ahead and expect that the 825,000 greenshoe option will be exercised by the underwriters.

UPDATE 9:51 AM EST: Jim Cramer just said on CNBC, “I think people who pay up here are not likely to make money.”

UPDATE 9:56 AM EST: Demandware has opened for trading.

At 9:55 we have seen 1.2 million shares trading and the price is $25.40.

UPDATE 10:15 AM EST: shares are now down to $23.69 and over 3.5 million shares.

UPDATE 11:00 AM EST: Demandware has traded 4.4 million shares and shares are trading at $23.83.  Remember, at 5.5 million shares it is the entire float without considering that the 825,000 share overallotment option was exercised.

UPDATE 11:50 AM EST: We have now seen 4.78 million shares trade hands and the last print was at $24.01.  The volume is petering out already.

UPDATE 12:21 PM EST: Dow Jones Headline “DJ Three IPOs Show Pricing Continues To Strengthen In US”

UPDATE 1:20 PM EST: Shares last traded at $24.73, still under the highs after the open and trading volume is 5.26 million shares.

UPDATE 2:30 PM EST:  Demandware trading volume is at 5.47 million shares so effectively the entire float has traded hands without the consideration of the greenshoe option of 825,000 shares.  On a side note, it does not feel normal at all to find a $24.00 stock which often has listed bid-ask spreads of $0.07 to $0.11 on official quote systems.

UPDATE 4:00 PM EST: Demandware has now traded just over 6 million shares… closing $23.85 (unofficial close) on 6,125,000 shares. Unfortunately, this was closer to the lows of the day than the high.

UPDATE 4:05 PM EST:  The 5.5 million shares float was traded in the first day and it is safe to assume that the greenshoe option for 825,000 shares was exercised by the underwriters today.  After all, the greenshoe would have represented nearly $6.5 million in free profits from the IPO prices.

JON C. OGG