Customer experience management platform Medallia (NYSE: MDLA) rose more than 70% in its New York Stock Exchange debut Friday.
The nearly two-decades-old business priced its shares at $21 apiece, the top of its proposed range, Thursday evening and traded as high as $39.54 the following morning. Medallia closed up roughly 76% at about $37 per share on Friday.
Medallia sold a total of 15.5 million shares in its IPO, raising $326 million at a $2.5 billion valuation in the process.
San Mateo-headquartered Medallia, led by chief executive officer Leslie Stretch, operates a platform meant to help businesses better provide for their customers. Its core product, the Medallia Experience Cloud, provides employees real-time data on customers collected from online review sites and social media. The service leverages that data to provide insights and tools to improve customer experiences.
The company is backed by four venture capital firms: Sequoia Capital — which owned a roughly 40% pre-IPO stake — Saints Capital, TriplePoint Venture Growth and Grotmol Solutions, the latter which invested a small amount of capital in 2010. Medallia has raised a total of $268 million in equity funding, including a $70 million Series F funding earlier this year.
Sequoia’s 40% stake was worth upwards of $1.8 billion at Medallia’s high price Friday.