(Updates with closing share price in second paragraph.)
June 12 (Bloomberg) -- MobileIron Inc., a maker of software that protects data accessed by employees on smartphones, gained in its debut after raising about $100 million in its initial public offering
MobileIron, based in Mountain View, California, surged 22 percent to $11.02 at the close in New York, giving it a market value of about $823 million. The company sold 11.1 million shares for $9 each in its IPO yesterday, according to data compiled by Bloomberg, after offering them for $8 to $10.
MobileIron is tapping the public markets during a transitional time in the mobile-device management, or MDM, industry. Demand for software that manages data is growing as employees bring their own smartphones and tablets into the workplace instead of relying on company-issued devices. However, MDM has become a highly competitive market, causing pricing pressure, according to MobileIron’s prospectus.
MobileIron has 9 percent of the MDM market, ranking fourth among competitors, based on 2012 revenue, according to data compiled by Bloomberg Industries from IDC. SAP AG holds the top spot, followed by Good Technology Corp. and AirWatch LLC -- owned by VMware Inc. -- the data shows.
MobileIron remains unprofitable even amid revenue growth that more than doubled in 2013 to $105.6 million, the company’s prospectus shows. The net loss narrowed to $32.5 million last year from $46.5 million in 2012.
MobileIron was among at least three technology companies that delayed their IPOs when the market for new issues slumped, people familiar with the matter said last month. Technology stocks have since rebounded from a selloff. Good Technology filed for a U.S. IPO last month.
MobileIron plans to use the proceeds from the IPO for working capital, corporate expenditures and potentially to acquire technology or complementary businesses. Morgan Stanley, Goldman Sachs Group Inc., Deutsche Bank AG and Barclays Plc managed the offering.
The stock is listed on the Nasdaq Stock Market under the symbol MOBL.