Xoom, a provider of online money transfer services, saw share prices surge more than 40% in Friday morning trading, as investors scooped up shares of one of the first venture-backed companies to go public in 2013.
The San Francisco-based company priced its shares at $16 each, above the projected range of $13 to $15. Shares were selling for more than $22 in midday trading, giving the company a market value close to $700 million.
Xoom raised just over $100 million in the offering, and its largest stakeholders are poised to rake in more, should share prices sustain themselves till lockup expires. The largest shareholder is Sequoia Capital, with 5.74 million shares, or 18.4% of the total. Its stake was worth close to $130 million, based on midday trading prices. A close second is NEA, with 16.2% of shares, valued around $115 million. Other shareholders include Agilus Ventures (10.2% stake, valued around $72 million), T. Row Price (7.4% stake, valued around $50 million) and DAG Ventures (7.1% stake, valued around $48 milliion).
Xoom was founded in 2001, according to Thomson Reuters, and raised its first institutional round in 2005. The company raised about $106 million in venture funding between 2005 and 2011.
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