Millions of shares of Alarm.com (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.

Alarm.com 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 Alarm.com 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 Alarm.com underwriters have been granted a 30-day option to purchase up to an additional 525,000 shares from Alarm.com 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.

More from Alarm.com

Let the Apple Watch Home Automation Games Begin

How Much is Alarm.com Worth? Establishing an IPO Valuation

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