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Workday Soars at Open (Update 1)

Updated from 9:37 a.m. EDT to include opening pricing in the second paragraph.

NEW YORK ( TheStreet) -- Workday (WDAY - Get Report) is one of, if not the hottest tech IPOs of the year and its pricing showed just that.

Shares opened for trading at $48.05, a jump of 72% above its $28 offering price.

Workday, which competes with the likes of Oracle (ORCL - Get Report), Salesforce.com (CRM - Get Report) and SAP (SAP), priced its offering at $28 a share, above the already raised range of $24 to $26 a share.

"Demand is many times multiple oversubscribed. This company is Oracle's and Salesforce's greatest nightmare," said Daniel Sweet, partner at IPO Boutique in a recent phone interview with TheStreet. "It's a potential acquisition target down the line."

Oracle has some history with Workday, aside from competing with Workday in the cloud computing space. Oracle acquired PeopleSoft in a hostile manner in 2005. Workday co-CEO Aneel Bhusri (along with David Duffield) was part of PeopleSoft before Oracle eventually took it over. Duffield was PeopleSoft's CEO.

For the six months ended July 31, Workday had sales of $119.5 million, up 118% ($54.8 million) from the year-earlier period. Though revenue is growing exceptionally fast, losses are also growing. Losses in the same period widened to $1.40 share from $1.27.

Shares begin trading Friday on the New York Stock Exchange under the ticker "WDAY".

Interested in more on Oracle? See TheStreet Ratings' report card for this stock.

-- Written by Chris Ciaccia in New York

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