Rocket Fuel shares explode, making this the week of the enterprise IPO

Rocket Fuel landed on Wall Street with a bang this morning, with stock exploding by the end of the morning session.

The enterprise software company based in Redwood City, Calif. announced the sale of four million shares Thursday night for $29, top of the range. The company raised $116 through its public offering at a sky high valuation of $942.5 million.

On Friday morning, shares jumped from $54.51 to $62.50 between 8am and 9am.

Rocket Fuel is the third enterprise software company to file for its IPO this week. BenefitFocus pulled off a killer IPO, and security firm FireEye saw its shares soar by 100 percent this morning, prompting the press to query whether we’ve been transported back to the “dotcom bubble” of 1999.

With FireEye experiencing a similar level of demand, analysts are pointing out that IPO pricing is tricky indeed. As Forbes points out, price it too high and the IPO could experience a similar outcome as Facebook. Too low, and investors will jump, but the company will have money left on the table.

Rocket Fuel got its start in 2008; it was incubated out of Salesforce.com. The company uses what it terms “artificial intelligence advertising” to buy advertising for marketers. It has gained a strong foothold in the market, despite competition from giants like Google and Yahoo. This technology was developed by online advertising experts and former rocket scientists from NASA, hence the name.

The company has raised over $75 million in funding to date from venture firms like Mohr Davidow Ventures and Nokia Growth Partners.