Model N Sets Up for Strong IPO Debut
ThinkstockInvestors always seem to be on the lookout for initial public offerings. The newest IPO coming to market is Model N Inc. (NASDAQ: MODN), with its revenue management software for tech and pharmaceutical companies, which just priced above its expected…
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Investors always seem to be on the lookout for initial public offerings. The newest IPO coming to market is Model N Inc. (NASDAQ: MODN), with its revenue management software for tech and pharmaceutical companies, which just priced above its expected range. Today’s IPO will be for 6.7 million shares at $15.50 per share.
Model N’s original price range was $12.50 to $14.50 per share, and the original offering was lifted slightly to allow insiders and backers to sell 740,000 shares rather than the original 460,000 shares.
Sales were up about 29% to $84.2 million for the trailing 12-month period ended September 30, 2012. Due to higher R&D and marketing costs, the company posted a $5.6 million loss for the same period.
We are seeing a pretty large underwriting group for the size of this offering, with J.P. Morgan Securities and Deutsche Bank Securities listed as joint bookrunning managers. Co-managers are Stifel Nicolaus, Pacific Crest Securities, Piper Jaffray and Raymond James. Model N granted the underwriters a 30-day option to purchase up to 1,011,000 additional shares of common stock to cover any overallotments.
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
