AppFolio, a US-based business automation software developer backed by networking system manufacturer Cisco and media group Bertelsmann, has raised $74.4m in an initial public offering on Nasdaq.
The company issued 6.2 million shares priced at $12 each. The underwriters have the 30-day option to buy another 930,000 shares, which would boost the size of the offering to $85.8m.
Founded in 2006, AppFolio provides cloud-based software that helps small and medium-sized property management and legal businesses automate the management of their properties or case loads.
The company had raised $57m in funding, according to media reports and regulatory filings, including a reported $5m in series A funding from Bertelsmann.
Bertelsmann and Cisco, which took part in AppFolio’s $22m series B round in 2008, both hold stakes of less than 5% of the company.
Investment Group of Santa Barbara, which participated in AppFolio’s series B round and 2009 series C, as well as preferred stock financings in 2012 and 2013, remains the company’s largest shareholder, with a 33.9% stake. BV Capital owns a 14.5% share of AppFolio.
Shareholds including ISGB have expressed interest in buying $22m of stock in the offering, but AppFolio has not revealed whether they followed up on that interest.
Morgan Stanley and Credit Suisse Securities are the joint book-running managers for the IPO, while Pacific Crest Securities and William Blair are acting as co-managers. AppFolio floated on Friday and its stock closed at $14.10 yesterday.