A busy week in tech IPOs kicks off tomorrow, when Dutch firm Ayden—whose payment-processing system is used by Facebook (FB), Netflix (NFLX), and Uber Technologies—goes public in the largest technology offering in Europe this year.
Demand for shares of Adyen are high: It priced its IPO at 240 euros per share, the high end of its initial expected range, and raised $1.1 billion. This implies a market valuation of $8.36 billion.
“This listing will only help us to continue to do what we are doing now: helping our merchants grow and reshaping the payments industry,” Adyen CEO Pieter van der Does said in a statement.
Meanwhile, two cloud-computing companies—Adaptive Insights and Avalara—were lined up to go public later in the week, underscoring the power of the cloud in this year’s tech IPO class. That changed Monday, when Workday (WDAY) said it agreed to acquire Adaptive Insights for $1.55 billion in cash.
“There’s a lot of cash in the marketplace, and technology is always hot,” Peter Bible, chief risk officer at accounting firm EisnerAmper, tells Barron’s.
Indeed, the shares of more than two dozen software-subscription companies worth at least $1 billion—including Salesforce.com (CRM), ServiceNow (NOW), and Zendesk (ZEN)—are up more than 40% so far this year.
The fin tech space, in which Adyen operates, has been downright frothy of late. Recent IPOs of GreenSky (GSKY) and Cardlytics (CDLX), and PayPal’s $2.2 billion acquisition of iZettle in May, have added to the momentum preceding Adyen’s IPO.
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