RealTime IT News

Salesforce IPO Hits the Street

Shares of Salesforce.com began trading this morning on the New York Stock Exchange and the hosted customer relationship management software provider has immediately gained the attention of traders.

Shares of the San Francisco-based company closed at $17.20, up $6.20 per share, or 56 percent, higher than the asking price.

Jane Hynes, a Salesforce.com spokesperson, said the company could not comment on the initial success of the stock launch because of the Securities & Exchange Commission's imposed "silent period" which lasts 25 days.

However, judging by the background noise in Salesforce.com's offices (mostly laughter) it's safe to say that the company is pleased with the early results.

Interest is high on the performance of Salesforce.com's debut on the exchange, a sounding board to determine whether the software-as-a-service model is viable on the stock market. Two other such companies, RightNow Technologies and WebSideStory, are registered with the SEC and plan to go public.

A strong showing by Salesforce.com in the coming weeks could translate to more angel funding and venture capital interest, according to analysts watching the offering with interest.