Sprinklr shares soar 11% in trading debut after downsizing IPO and pricing below range

Sprinklr Inc.’s shares
CXM,
11.57%

rose 11% in their trading debut Wednesday, after the company’s downsized initial public offering priced below the expected range, lowering what the customer-experience software company raised to $266 million from a previous expectation of up to $380 million. The company said overnight that it sold 16.625 million shares in the IPO which priced at $16 a share, compared with a previous expectation of an offering of 19.000 million shares to price between $18 and $20 a share. At the IPO pricing, Sprinklr was valued at $4.01 billion. The stock is trading on the NYSE under the ticker symbol “CXW.” Morgan Stanley, J.P. Morgan, Citigroup, Barclays and Wells Fargo Securities were the lead book-running managers. The company recorded a net loss of $41.8 million on revenue of $386.9 million for the fiscal year ended Jan. 31, after a loss of $39.1 million on revenue of $324.3 million the year before. The company is going public at a time that the Renaissance IPO ETF
IPO,
1.33%

has gained 3.5 over the past three months while the S&P 500
SPX,
0.09%

has advanced 8.6%.