Shares in digital identity management firm ForgeRock Inc. surged on their New York Stock Exchange debut today as tech initial public offerings continue to gain strong support from investors.
ForgeRock’s shares debuted at $25 per share, ahead of an initial price guidance of $21 to $24, with the company raising $275 million on a valuation of $2 billion. The stock never looked back, hitting a high of $37.35 at 11:55 a.m. before closing regular trading at $36.50.
Founded in 2010, ForgeRock offers digital identity management solutions designed to transform how companies securely interact with customers, employees, devices and things. The company’s platform uses artificial intelligence to provide identity management and governance, access management and strong authentication, identity gateway, directory services, user-managed access and edge security.
The platform is designed to be scalable, with support for the management of potentially billions of identities. ForgeRock’s Identity platform can be accessed as a service or deployed as software, including on-premises or any cloud environment, including multicloud and hybrid clouds that include corporate data centers.
Coming into its IPO, ForgeRock reported $84.8 million in revenue for the sixth months through June 30, up 53% year-over-year, with a net loss of $20.1 million. Reuters reported that more than 96% of the company’s revenue comes from subscriptions, with nearly half of it generated outside the U.S.
Notable customers include AutoZone Inc., Koninklijke Philips N.V., Geico Insurance Agency Inc., the BBC, BMW, Pearson plc and Deloitte Touche Tohmatsu Ltd.
The strong support for ForgeRock’s IPO is in part driven by the company’s prospects. When last raising venture capital in April, ForgeRock said that its revenue was north of $100 million and it had annual recurring revenue growth of 75%.
Much of that demand is being driven by the switch to remote working during the COVID-19 pandemic. “More and more of us are doing our work remotely and we’re banking and shopping — and health care and public services — online,” ForgeRock Chief Executive Officer Fran Rosch told Bloomberg. “That creates a really strong demand for digital identity products.”
ForgeRock’s successful IPO comes on a week that has, including ForgeRock, seen 12 companies go public on U.S. equities markets, raising $4.38 billion. The largest among them was Thoughtworks Holdings Inc., which raised $773 million in its public offering. Like ForgeRock, Throughtworks also found willing investors, its shares jumping 40% on debut.
The interest in ForgeRock did not end after the bell. The company’s share price rose nearly 3% more in after-hours trading.
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