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LINE Launches Biggest Tech IPO Of 2016, Shares Soar Nearly 27% In First Day Of Trade

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Japanese messaging-app maker LINE debuted on the New York Stock Exchange today, and what a first day of trade it was. Shares of the company closed the day at $41.55 per share, an increase of 26.52% from its initial offering price of $32.50.

LINE Corporation develops and provides a platform for mobile messaging and communication services, content distribution, and advertising in Japan and internationally. The company offers LINE, a cross-platform messaging application that enables users to communicate through free instant messaging, and voice and video calls, as well as serves as a small portal to its other applications and services. (Also Read: Everything Investors Need To Know About LINE, The Biggest Tech IPO Of 2016)

Despite 2016 being a relatively rough year for the IPO market thus far, LINE’s success follows in the footsteps Twilio Inc. (TWLO - Free Report) , a cloud communication platform provider that debuted recently and also saw great success in its IPO. TWLO has seen its shares increase more than 45% to date since its launch.

One success story doesn’t make a trend, but two in a row is a start. Many are hoping that after LINE was able to somewhat replicate TWLO’s success that more private tech companies will be encouraged to launch IPO’s of their own before the end of the year.

With its offering, LINE was able to raise more than $1.3 billion between its offering on the NYSE and its offering in Japan on the Tokyo stock market. The company originally planned to go public in 2014, but decided to pull the launch. This year though, as one of the few tech IPOs to be launched, it is a hot commodity, as shown in its first day trading success.

While the first day of trade doesn’t necessarily make or break an IPO, a big jump in a company’s share price in initial trading is exactly what a company and investors like to see. When a market is receptive to IPO launches like this one, it encourages others who are considering the move to go ahead with their plans. LINE’s performance in the coming weeks and months will definitely be something to watch for, in  addition to whether or not this offering will spark further activity in the IPO market.

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