Luxoft surges in 1st day of trading on the NYSE

Market Analyze
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NEW YORK Shares of Luxoft, which develops and maintains software for businesses and other enterprises, surged in their first day of trading on the New York Stock Exchange.

The stock gained $3.65, or 21.5 percent, to $20.65 Wednesday morning.

Luxoft Holding Inc., based in the British Virgin Islands, said that the offering of about 4.1 million shares was priced at $17 per share, the midpoint of the expected range of $16 to $18 per share.

It raised almost $69.7 million from the offering. Both Luxoft and its parent company, IBS Group Holding Ltd., are offering the same amount of stock in the IPO. IBS is a software development and information technology services provider in Eastern Europe.

Luxoft won't receive any proceeds from the shares sold by IBS.

Luxoft said in a regulatory filing that it anticipates net proceeds of about $31.1 million, based on the IPO pricing at $17 per share.

The underwriters are being given a 30-day option to buy up to an additional 613,810 shares to cover any excess demand. Luxoft anticipates net proceeds of approximately $35.9 million if the underwriters fully exercise their option.

Luxoft said that it plans to use its proceeds after expenses related to the offering for working capital and other general corporate purposes.

For the year ended March 31, Luxoft had net income of $37.5 million on revenue of $314.6 million.

The stock is trading under the "LXFT" ticker symbol.

The offering is expected to close on July 1.