Xoom shares soar over 44% after IPO

Fri 1:48 pm by Deborah Bacal

The company, which generates revenue mostly from transaction fees, operates Xoom.com, a money transfer business that allows money to be sent from the U.S. internationally using computers and smartphones.

Xoom (NASDAQ:XOOM) shares soared more than 44% after its debut on the markets, with its stock lately changing hands at $23.10 - far and above the company's IPO price of $16.

The IPO price also came in above expectations, with the company offering up an increased 6.33 million common shares in its debut.

The online money-transfer provider filed plans last month for an estimated IPO of up to $50 million, and earlier this month estimated the offering of 5.75 million shares would price from $13 to $15 a share.

The company, which generates revenue mostly from transaction fees, operates Xoom.com, a money transfer business that allows money to be sent from the U.S. internationally using computers and smartphones.

Its revenue grew 68% in the first nine months of last year to $57.8 million, which has helped it attract investment from the likes of VC firms like Sequoia Capital, which will retain a rough 18% stake after the IPO.

It also posted a loss of $4.3 million in the nine months that ended last September.