Guidewire jumps 38 percent in stock market debut

AP News
Posted: Jan 25, 2012 1:55 PM
Guidewire jumps 38 percent in stock market debut

Guidewire Software quickly found a following in its stock market debut Wednesday.

The insurance software maker's stock jumped to $18 within their first few hours of trading, a 38 percent gain from the initial public offering price of $13.

Guide Software Inc. sold 8.85 million shares in the IPO. The offering raised $115 million, before expenses.

The 11-year-old company is based in San Mateo, Calif. and employs about 200 people. It specializes in software that helps insurers analyze risks and manage claims.

After a history of early losses, Guide Software turned a profit in each of the last two fiscal years. It earned $36 million on revenue of $172 million in the year ending last July.

The stock trades under the ticker symbol GWRE.