Selling stockholders are offering 3.33 million shares and the rest are being offered by the company. The underwriters have an overallotment option on an additional 1.96 million shares.
The company has two classes of common stock that are priced equally, but Class B shares are entitled to 10 votes each while Class A shares are entitled to one vote per share. After the offering, holders of Class B shares will hold about 98.5% of the voting power of outstanding shares, and the company’s officers, directors and their affiliates will hold about 74% of the voting power in the company.
Veeva plans to use its share of the proceeds, estimated at $138.3 million if the underwriters’ options are taken and the shares are priced at the mid-point of the estimated range, for general corporate purposes and working capital. In its filing the company said, “[W]e do not currently have specific planned uses of the proceeds. The amount of proceeds we use for the purposes above, if any, will depend on the level of cash generated from our operations.”
The company’s revenues doubled in the 2013 fiscal year that ended in January to $129.5 million from $61.3 million the year before. Net income rose from $4.23 million to $18.8 million in the same period.
Veeva will list its Class A shares on the New York Stock Exchange under the ticker symbol VEEV.
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