C3.ai ( AI) – Get Report, an expert system software service provider, started trading Wednesday on the New York Stock Exchange at $100 a share, up 138% from its preliminary public offering cost of $42.
At last check, the stock was at $96.48, up 129%.
With the company issuing 15.5 million Class A shares, C3.ai raised $651 million. The $42 share price put the company’s worth at $4.05 billion.
C3 reported earnings of $156.7 million in the fiscal year ended April 30, up from $91.6 million in the previous year. Over the exact same period, subscription income grew 75% to $135.4 million from $77.5 million. Subscription software represents 86% of the total income.
C3.ai produced a net loss of $69.4 million in the current financial year, widening from $33.3 million a year previously.
“Our market-entry method has been to establish high-value client engagements with big worldwide early adopters, or lighthouse customers, in Europe, Asia, and the U.S. across a series of industries,” the company stated in its preliminary public offering prospectus. “These lighthouse customers serve as evidence points for other possible customers in their specific markets.”
As for risks, “a minimal variety of consumers have accounted for a considerable part of our earnings,” C3.ai stated. “If existing consumers do not renew their agreements with us, … our income might decrease.”
Further, “we have a history of operating losses and might not achieve or sustain success in the future. We face extreme competitors and could lose market share to our competitors,” the business included.
IPOs have been on a tear given that the stock market crashed in March, with the Renaissance IPO ETF ( IPO) – Get Report jumping 73% in the last 6 months.