NEW YORK (AP) -- Shares of Luxoft, which develops and maintains software for businesses and other enterprises, surged in their first day of trading on the New York Stock Exchange.
The stock gained $3.38, or about 20 percent, to close at $20.38 on Wednesday, having risen as high as $21.70 during the session.
Luxoft Holding Inc., based in Zug, Switzerland, said that the offering of about 4.1 million shares was priced at $17 per share, the midpoint of the expected range of $16 to $18 per share. The IPO raised almost $69.7 million.
Both Luxoft and its parent company, IBS Group Holding Ltd., offered 2.05 million shares each. IBS is a software development and information technology services provider in Eastern Europe. Luxoft won't receive any proceeds from the shares sold by IBS.
Luxoft said in a regulatory filing that it anticipates net proceeds of about $31.1 million, which it plans to use for working capital and other general corporate purposes. The underwriters are being given a 30-day option to buy up to an additional 613,810 shares to cover any excess demand. If fully sold, that would boost Luxoft's total net take to about $35.9 million.
For the year ended March 31, Luxoft had net income of $37.5 million on revenue of $314.6 million.
The stock is trading under the "LXFT" ticker symbol.
The offering is expected to close on July 1.