(Bloomberg) -- Datto Holding Corp., a developer of cloud-based data backup software, gained only 0.4% in its trading debut after raising $594 million in an initial public offering priced at the top end of a marketed range.
The company sold 22 million shares on Tuesday for $27 each after marketing them for $24 to $27 apiece. The shares, which climbed as much as 20% in their opening trades, closed Wednesday at $27.10 apiece, giving the company a market value of $4.27 billion.
Datto, which is backed by Vista Equity Partners, follows a wave of software IPOs this year. Software companies account for about 11% of the more than $126 billion raised this year on U.S. exchanges, according to data compiled by Bloomberg. Datto's listing proceeds one by McAfee Corp., which is seeking to raise $814 million in an IPO pricing later Wednesday.
The value of software listings this year has climbed 88% on a weighted-average basis. The S&P 500 Index has edged up 6.3% this year.
Norwalk, Connecticut-based Datto relies on small to midsize companies to buy its software for security, data recovery and cloud backup. The company was founded in 2007, according to its website. It acquired smaller rivals Backupify in 2014 and Open Mesh in 2017. It was acquired by Vista later that year and was merged with New York-based Autotask.
Datto's offering was led by Morgan Stanley, Bank of America Corp., Barclays Plc and Credit Suisse Group AG. The shares are trading on the New York Stock Exchange under the symbol MSP.
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