Another e-commerce software IPO that took off on Thursday was Primus Knowledge Solutions, which develops Web-based customer-service software. The IPO was priced at $11 — the middle of its range — and opened at $14. Anybody who got in the stock at the opening price must be pleased.
Shares of Primus closed up 6-9/16 to 17-9/16, a gain of nearly 60 percent. Some analysts had been expecting a smaller pop for this stock, and its performance underscores the fact that e-commerce infrastructure is a booming business.
Many e-commerce retailers are risky investment because they have little brand awareness and are battling low margins and waging price wars. The good thing for companies like Primus is that they should benefit no matter which e-commerce retailers win in the end.