(Reuters) - Demandware Inc priced its initial public offering of 5.5 million shares at $16 each, well above its expected price range, valuing the company at about $448 million.
The company, which raised $88 million in proceeds from the IPO, had expected to sell the shares between $12.50 and $14.50 apiece.
Demandware is the fifth cloud computing-based software company to join the IPO wave since December.
All these IPOs were priced within or above their indicated range, and have seen their stock surge since.
Cloud computing allows companies to access information on the Internet from remote servers rather than from their own computers in-house, which proponents claim helps cut costs.
As demand from businesses for this type of technology has climbed, so has interest from investors hoping to tap a global market.
According to two underwriters, Demandware closed the books for institutional investors a day early due to strong demand for the offering.
Demandware, which is backed by venture firms North Bridge Venture Partners and General Catalyst, posted a loss of $1.4 million on revenue of $56.5 million in 2011.
Shares of the company are expected to begin trading on Thursday on the New York Stock Exchange under the symbol “DWRE.”
Underwriters to the offering included Goldman Sachs, Deutsche Bank, William Blair, Oppenheimer, Canaccord Genuity and First Analysis Security Corp.
Reporting by Sharanya Hrishikesh and Aman Shah in Bangalore; Additional reporting by Olivia Oran; Editing by Supriya Kurane