Workday sets IPO price range
Pricing values the cloud computing company at nearly $4 billion. Competitors include Oracle and SAP.
Workday, the maker of cloud-based software for human resources, has set the terms of its initial pricing offering, valuing the company at almost $4 billion.
In a filing with the Securities and Exchange Commission, Workday is pricing its IPO at $21 to $24 a share, and is looking to sell 26.1 million Class A shares in the process.
The company will sell 22.75 million shares, with the remaining shares sold by outside investors.
Workday, which lists its primary competition as Oracle (ORCL) and SAP (SAP) in the filing, is a "leading provider of enterprise cloud-based applications for human capital management (HCM), payroll, financial management, time tracking, procurement and employee expense management."
In the six months ended July 31, 2012, Workday generated $119.52 million in revenue, up from $54.82 million in the same period in 2011. Despite the sharp revenue increase, the loss in the period widened from $1.27 a share to $1.40 a share.
Workday said its in filing that does not expect to be profitable for the foreseeable future.
"We expect our operating expenses to increase in the future due to anticipated increases in sales and marketing expenses, research and development expenses, operations costs and general and administrative costs, and therefore we expect our losses to continue for the foreseeable future," the filing noted.
Morgan Stanley and Goldman Sachs are the lead book-runners on the deal.
The company intends to list its stock on the New York Stock Exchange under the ticker symbol "WDAY."
Interested in more on Oracle? See TheStreet Ratings' report card for this stock.
More from TheStreet.com
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Start investing in technology companies with help from financial writers and experts who know the industry best. Learn what to look for in a technology company to make the right investment decisions.
Hotels and restaurants are increasingly fighting back against negative online reviews -- by suing the writers. So be careful how you phrase your disgust with that disappointing dinner.
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'