Smart grid company Silver Spring Networks saw its shares soar by close to 30 percent in early morning trading on the New York Stock Exchange Wednesday. Late last night the company priced its shares at $17 (the mid point of its range), and its stock reached a high of $22.49 in morning trading.
By 11:00 AM EST, the stock had dropped a bit and has been hovering around $21. As of 3:00 PM EST, the stock was at $21.68.
Silver Spring also last night decided to make 4.75 million shares available, which was 1 million shares more than the company had originally planned. Silver Spring raised $81 million in the process. In addition, longtime investor Foundation Capital also plans to purchase $12 million worth of stock at the IPO price in a private placement.
Silver Spring sells wireless networks and smart meters to utilities that can be used to run power grids more efficiently and offer new types of grid services. The company counts large utilities as customers like PG&E, Florida Power and Light, Oklahoma Gas & Electric, and Baltimore Gas & Electric.
The company filed to go public back in the summer of 2011, and waited out the entire year of 2012 before actually going public. The company’s lead investors include Foundation Capital and Kleiner Perkins.
Silver Spring Networks CEO Scott Lang told me in a phone call from the New York Stock Exchange this morning that the company “couldn’t be more pleased” with the IPO and that the process was “oversubscribed.” In response to my question of why it took so long to go public, Lang said that there were external market conditions and volatilities that were outside their control.
“We had a strong year in 2012 and we were patient,” said Lang. Lang owned 2.8 percent, or 1.04 million shares, before the IPO. At $21 per share, that percent is worth $21.84 million. Typically investors and executives have to hold their shares for at least six months before selling them.
Updated at 3:00 PM EST with the most recent stock price.