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Coupa Software (COUP) Gains 85% on the First Day of Trade

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San Mateo, CA-based Coupa Software Inc. (COUP - Free Report) soared over 131% at one point on the very first day of its trade at the Nasdaq stock exchange, before settling at an intraday gain of approximately 85%.

As part of its initial public offering (IPO), this cloud-based software platform recently issued 7.4 million shares at $18 each. The IPO has fetched the company a total sum of $133.2 million.

Notably, Battery Ventures and EL Dorado Ventures with 16.2% and 13.9% ownership, respectively, are the major venture capitalists. In its last round of funding (G series), Coupa Software raised $165 million from the venture capitalists.

Coupa Software provides a unified, cloud-based spend management platform that connects more than 460 organizations with above 2 million suppliers globally. Per the S1 filing, the platform “unites the three core aspects of spend management — procurement, invoicing and expense management — and has the ability to manage both direct and indirect spend”.

Coupa Software’s platform helps enterprises keep a tab of daily expenditures. Per Techcrunch, the company claims to have saved almost $8 billion of its customers, which include the likes of Molina Healthcare and Staples.

The tech IPO market has been sluggish for most of the year. Due to several factors resulting in global economic uncertainty, we simply haven’t seen many companies going public in 2016.

Coupa follows the likes of Twilio (TWLO - Free Report) and Acacia Communications (ACIA - Free Report) , which have recently debuted and have been among the biggest movers over the past few months.

Per data available from Renaissance Capital, Acacia is the most successful IPO in terms of returns (over 375%) over the last 12 months. It carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Some other companies, which are currently trading higher than their respective IPO prices are Everbridge, Inc. (EVBG - Free Report) and Trade Desk Inc. Both the companies were listed last month. While Everbridge is trading over 35% of its IPO price of $12 a share, Trade Desk is up approximately 45% from its IPO price of $18.

Furthermore, last week, hyper converged integrated systems (HCIS) provider Nutanix soared 133% on its debut.

After a sluggish first half, the market has witnessed quite a few successful IPOs lately. Coupa’s successful debut may inspire other companies to tread the same path.

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