Workday Sets IPO Valuing Company at as Much as $3.85 Billion
Workday, an enterprise cloud software company, revealed plans to sell 22.75 million shares of stock valued at between $21-$24 in a new filing with the Securities and Exchange Commission on Monday. At the high end of that range, Workday would raise about $546 million, valuing the company at $3.85 billion.
The company’s IPO has been one of the most hotly anticipated tech IPOs in recent months. Workday first publicly announced its IPO at the end of August, a little later than some had expected, and did not include any details about pricing.
Workday was founded seven years ago by two former executives from PeopleSoft. Workday’s revenue has exploded in the past few years. Workday generated $119.5 million in revenues during the first six months of 2012, more than double the amount it took in during the same period last year.
The IPO comes at an interesting time for the tech industry. Facebook’s IPO earlier this year was largely considered a disaster, and other consumer tech companies like Zynga and Groupon which went public at the end of last year are now struggling. However, enterprise tech companies like ServiceNow and Palo Alto Networks have fared much better in their IPOs this year.