Shares of Model N rise in debut
March 20 (Reuters) - Shares of Model N Inc rose as much as 35.5 percent in their trading debut, after the revenue management software maker priced its enlarged offering above its projected price range.
The Redwood City, California-based company had priced its initial offering of 6.7 million shares at $15.50 each, raising $103.85 million. At the offer price, Model N has a market value of about $332 million.
The company sold 6 million shares in the offering, while the selling stock holders sold the rest.
Model N provides revenue management software to life science and technology companies to help them manage pricing and contracting.
The company, which filed for an IPO in February 2013, counts Johnson & Johnson, Boston Scientific Corp, Dell Inc and VMware Inc among its customers.
Model N is backed by Accel-KKR Co LLC, a partnership between venture capitalist firm Accel Partners and private equity firm KKR & Co LP.
The company plans to use the proceeds for investing in research and development and complementary businesses. It reported a net loss of $1.3 million for the three months ended Dec. 31.
JP Morgan and Deutsche Bank acted as joint book-running managers to the offering.
Shares of Model N were trading at $20.87 on the New York Stock Exchange on Wednesday morning.
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