Softcat's shares have rocketed by 14 per cent this morning following the reseller's debut on the London Stock Exchange.
The Marlow-based firm announced this morning it had priced its IPO at 240 pence per share, with the first day of official, unconditional dealings set for next Wednesday.
Softcat's shares can be traded today on a conditional basis and are now trading at about 275 pence. They hit a high of 280 pence at 8.55am.
The IPO valued Softcat, which posted an operating profit of £40.6m on revenues of £596.1m in its last financial year, at £427.3m and will raise proceeds of £153m.
Analyst Megabuyte said Softcat's organic growth, clarity of business model and cash-generative nature have resonated with investors.
"In the week that Sophos impressed with its maiden interims, it is great to see another strong technology sector company come to the UK market," it said.
"Talking to our friends in the City, it is clear that Softcat has been very well received by the investment community."
However, Megabuyte added: "Lest we get too carried away, however, we should remember that the shift to cloud and other next-generation technologies presents risk as well as opportunity for all companies in the sector.
"For Softcat, making sure that it successfully navigates the inevitable changes in software licensing that will come with the move to cloud will be a key factor in maintaining its great track record."
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