Millions of shares of (Nasdaq: ALRM) are trading hands in the first day of the home automation provider’s IPO. The company, which was offering seven million shares at $14 (£9), saw its stock open at $16.05 (£10.23), or almost 15% above the initial offering price.

In only an hour of trading, nearly six million shares had been exchanged at prices up to $17.88 (£11.39), or 27.7% above the offering price. is only the second worthwhile pure-play home automation IPO after Control4, which went public in 2013.

On its first day of trading, Control4 opened at 23.4% above its offering price and ended the day at 25.3% above its initial price.

When announced its impending IPO through a Form S-1 Filing in May 2015, we speculated the company would achieve a market valuation of about $850 million (£540 million) to $900 million (£570 million) (and I added some bonus points for hype factor to bring the potential market cap to more than $1 billion (£630 million).

At $14 per share, the initial fully diluted market value was about $669 million (£426 million).

The underwriters have been granted a 30-day option to purchase up to an additional 525,000 shares from and up to 525,000 shares of common stock from selling stockholders at the IPO price to cover over-allotments, if any.

We’ll keep an eye on the market cap in the coming days.

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