Continuing a spree of tech-heavy IPO activity this month, cloud-based software company Sumo Logic, Inc. ($SUMO) made its debut on the Nasdaq Thursday at $22 per share.
The Silicon Valley-based company offered 14.8 million shares for a total potential market cap of $356 million. Shares jumped 21 percent as trading began before scaling back throughout the afternoon.
Sumo Logic is a leader in the burgeoning data operations space, which aims to help companies collect, analyze, and develop tools around their cloud-based data sets. With more and more companies migrating onto the cloud, the company is positioning itself as a needed service for those who want to optimize their data.
"Because of digital transformation, what we see that's happening is the need for companies to innovate in their digital services or else get left behind," Ramin Sayar, president and CEO of Sumo Logic, told Cheddar. "We refer to that as 'get lapped.'"
The executive describes Sumo's product as a "cloud-native analytics platform" that helps companies collect and analyze data across different teams and organizations to "ultimately deliver better digital experiences."
"More importantly, if you look at the volume of data that's being generated today, it's a tsunami of information coming at you," he said.
While the transition into cloud computing is still in the "early innings," Sayar said he's confident data operations such as Sumo will become essential in the near future.
Share prices were up 22 percent at the close of markets.