Big data firm Sumo Logic’s shares surge 21% in Nasdaq debut

(Reuters) – Shares of big data firm Sumo Logic Inc jumped 21% in their Nasdaq debut on Thursday, as investor optimism for new stocks remained unabated.

The stock opened at $26.64 per share, giving the company a valuation of $2.63 billion, compared with the IPO price of $22 per share.

This comes a day after Warren Buffett-backed Snowflake Inc’s shares more than doubled on debut after the data warehouse company raised $3.36 billion in the biggest U.S. listing of 2020.

Sumo Logic, which raised $325.6 million in its upsized IPO, is the latest successful debut in a hot IPO market, where demand for new listings remains high after COVID-19 pandemic-induced market volatility forced many companies to halt their IPO plans earlier this year.

For the year ended Jan. 31, the company posted a wider loss of $92.1 million from $47.8 million a year earlier. Revenue for the same period jumped about 50%.

Entities affiliated with venture capital firm Greylock will own 19% of Sumo Logic after the offering, while those linked with current stockholder Tiger Global Management indicated an interest in purchasing up to 10% of shares at the IPO price, a company filing showed earlier this month. (https://bit.ly/32qTNVo)

Morgan Stanley, J.P. Morgan, RBC Capital Markets and Jefferies LLC served as lead underwriters for the offering.

(Reporting by Niket Nishant in Bengaluru; Editing by Shinjini Ganguli)