Hortonworks and New Relic Post Impressive Gains In First Day Of IPO Trading

On Friday December 12, Hortonworks finished its first day of trading with a share price of $26.48, roughly 65% more than the IPO price of $16 per share. Hortonworks plans to raise $100M by means of 6,250,000 publicly available shares. Friday’s impressive showing bodes well for the Hadoop infrastructure and analytics market in 2015, particularly given that Hortonworks competitors are gearing up to execute IPOs in 2015 or shortly thereafter. Cloud monitoring and analytics vendor New Relic similarly gained in its first day of trading by rising 48% from $23 per share to $33.02 by the end of the day. The results represented a huge coup for venture capitalist Peter Fenton of Benchmark Capital, who serves on the board of directors of both companies. Whereas Hortonworks raised $100M in its IPO, New Relic raised $115M. The real winner in both of these IPOs, however, is Yahoo given that Yahoo owns roughly 20% of the shares of its spin-off Hortonworks and 16.8% of shares of New Relic.

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