|
SalesForce.com - Billion $ Valuation On Their IPO
They only net about $3.5 Mil and they're valued at $1.1 Bil.
Nice ratio!
Salesforce.com Prices IPO at $11 a Share
SAN FRANCISCO - Online software pioneer Salesforce.com Inc. priced its closely watched IPO at $11 per share Tuesday, raising $110 million, or 38 percent more than the company originally anticipated.
The robust demand for Salesforce.com's initial public offering of 10 million shares represents the latest sign of investors' renewed interest in taking risks on young companies.
The San Francisco-based company set an $8-per-share price target in April, then raised the goal to $9.50 per share earlier Tuesday before the deal's investment bankers, led by Morgan Stanley, capitalized on the strong demand to raise even more money.
The final IPO price values Salesforce.com at $1.1 billion after just five years in business. The company's shares will make their trading debut Wednesday on the New York Stock Exchange under the ticker symbol, "CRM" ? a shorthand reference to the "customer relationship management" software made by the company.
The long wait paid off for 39-year-old Benioff, whose 27.8 percent stake in Salesforce.com is worth $310 million. Benioff cashed in some of his stock just before the company filed its IPO plans, realizing a $16 million gain by selling 2 million shares at $8 apiece.
Investors' willingness to ante up for Salesforce.com's shares provides further momentum for the resurgent IPO market.
Through April, Salesforce.com had 147,000 subscribers, helping the company earn $3.5 million on revenue of $96 million in its last fiscal year ending in January. The profit included a $3.4 million gain from the reversal of an earlier charge for abandoning an office lease.
|