Medallia up more than 75% in IPO

Medallia jumped more than 75% in its debut market Friday, becoming the latest cloud computing software publisher to attract public market investors.

The San Francisco-based company, which sells software tools to help companies monitor customer satisfaction, was initially set at $ 21 per share, but broke the $ 35 per share mark shortly after the start of trading. In a July 8 SEC press release, the company said it expects stock prices to be between $ 16 and $ 18. The stock climbed to $ 39.56 before closing at $ 37.05, giving it a market valuation of more than $ 4.5 billion.

Medallia has joined Zoom, Crowdstrike and PagerDuty as a cloud computing software provider with remarkable opening days this year. The three countries recorded an increase of at least 50%, with Zoom posting the largest gain, at 72%, when the videoconferencing company debuted in April.

Slack also experienced a sharp rise from day one trading, but the chat application developer used a direct list instead of the traditional IPO to enter the public market.

Medallia CEO Leslie Stretch, appearing in CNBC's Squawk Box, said the company was an alternative to traditional customer survey providers. The company recently signed agreements with Salesforce and Adobe, Stretch said.

"It's great to go on the market with leaders like this," said Stretch, shortly after the start of trading. "Adobe and Salesforce fully understand that the customer is at the center of all digital transformations, and we are the center of it."

Medalia's competitors are SurveyMonkey, which was announced to the public last September, and Qualtrics, which SAP bought for $ 8 billion in November, just before its IPO.

Revenue for the year ended January rose 20% to $ 313.6 million, Medallia said in a regulatory filing. Its net loss was $ 82.2 million, compared with $ 70.36 million, while sales and marketing costs jumped 26%.

Prior to this offer, Sequoia Capital held 40% of the company, which represented an unusually large stake for a venture capital firm. At the highest Friday, Sequoia's share was worth about $ 1.8 billion.

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