Model N Sets Up for Strong IPO Debut

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.