March 20 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
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
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.