Thoughtworks valued at about $12.3 billion

Shares of Thoughtworks jumped nearly 24 percent in their Nasdaq debut, valuing the company at nearly US$9 billion (A$12.3 billion), after the software consultancy firm priced its initial public offering well above range.

The company’s stock opened at US$26, compared with its initial public offering price of US$21. This was above its targeted price range of US$18 to US$20.

Backed by Germany’s Siemens AG, Thoughtworks sold 16.4 million shares in the IPO, raising about US$344 million.

Other investors, including funds advised by Apax Partners, sold about 20.4 million shares.

The company, which helps firms digitise their operations, counts Canadian wireless carrier Telus, German luxury carmaker Daimler AG, US supermarket chain Kroger and payments company PayPal Holdings as customers.

In Australia, customers include NAB, Suncorp, IAG and Zip.

The Chicago, Illinois-based company posted 40.3 percent growth in revenue to US$260.4 million in the three months ended June.

Banking on a boom in businesses increasingly digitizing operations following the pandemic, the company’s executives said the 28-year old firm has been looking to go public in recent years.

“The market that we operate in is expected to double by 2025 … We will hire across the globe, and continue to invest in our service offerings,” chief financial officer Erin Cummins told Reuters.

Cummins said hiring and a continued expansion of the business was the company’s top priority.

Thoughtworks has more than 9000 employees as of June, operating in 17 countries.

Goldman Sachs and JP Morgan were the lead underwriters for the offering.