NEW YORK, N.Y. – Shares of Model N rose more than 38 per cent Wednesday, their first day of trading on the New York Stock Exchange.
The Redwood City, Calif., company, which offers revenue management services for the life science and technology industries, raised approximately $103.9 million from its initial public offering of about 6.7 million shares.
The offering was priced at $15.50 per share.
The company originally planned to offer about 6.5 million shares, which it expected to price between $12.50 and $14.50 per share.
Model N is offering 6 million shares, while a selling stockholder is offering 740,000 shares.
Model N gave underwriters a 30-day option to buy up to an additional 1 million shares to cover any excess demand.
The company said in a regulatory filing that it plans to use its net proceeds from the offering for working capital and general corporate purposes. Model N said it may also use part of the net proceeds to buy or invest in complementary businesses, products, services, technologies or other assets.
The company won’t receive any proceeds from the shares sold by the selling stockholder.
For the year ended Sept. 30, Model N had a net loss of $5.7 million on revenue of $84.3 million. In 2011 it reported a profit of $1.5 million on revenue of $65.2 million.
The stock trades under the “MODN” ticker symbol. It gained $5.98, or 38.6 per cent, to $21.48 in morning trading.