Shares of Cornerstone OnDemand Inc. surged in their debut Thursday after the software company's initial public offering priced above expectations.
In afternoon trading, the stock is at $19.75, up 52 percent, as the broader markets rallied after selling off Wednesday.
Cornerstone OnDemand, which develops talent management software for corporations and not-for-profit groups, had expected the IPO to price in a range of $9 to $11, but the shares priced higher at $13. The Santa Monica, Calif., company is selling 7.5 million shares, and shareholders are offering another 3 million shares.
Cornerstone plans to use proceeds for general corporate purposes, debt repayment and possible acquisitions. It will not receive proceeds from the sale of stock by shareholders.
For 2010, the company posted a loss of $56.6 million on revenue of $46.6 million. In a filing with regulators, the company said it has grown its business in each of the past 10 years and its clients now number nearly 500.
The lead underwriters are Goldman, Sachs & Co. and Barclays Capital Inc., with William Blair & Co. L.L.C., Piper Jaffray & Co., Pacific Crest Securities LLC and JMP Securities LLC co-managing the offering.
Shares are listed on the Nasdaq Global Market under the symbol "CSOD."