Brightcove’s Solid IPO Debut (BCOV, AKAM, SKYY)

Brightcove INc. (NASDAQ: BCOV) is surging after its initial public offering this Friday. The cloud video hosting platform operator for enterprises saw its 5 million share IPO price at $11.00 per share, which was in the middle of the $10.00 to $11.00 range.

Joint book-runners were Morgan Stanley and Stifel Nicolaus.  Co-managers in the offering were RBC Capital Markets, Pacific Crest Securities, and Raymond James.  The company has granted an overallotment options for up to 750,000 shares of stock to be sold at the same terms to cover more orders.

So far we are seeing a 36% gain to $15.05, but the real post-IPO range is $14.00 to $15.76 and at 11:20 AM EST there has been 3.03 million shares which have traded hands.  Based upon today’s gap-up it is safe to assume that the greenshoe option was exercised in full.

Another cloud player with the Video Cloud platform is now public, and that means Akamai Technologies, Inc. (NASDAQ: AKAM) has some new competition and that the First Trust ISE Cloud Computing ETF (NASDAQ: SKYY) may get a new component in the weeks or months ahead.

JON C. OGG