Five9, a US-based provider of cloud-based software, has announced that its initial public offering has raised $70m. The company issued 10 million shares priced at $7 per share, valuing the company at around $322.3m.
SAP Ventures, the corporate venturing arm of software company SAP, led Five9’s $22m series D round in May 2013 and currently holds a stake worth 6.7% that will be diluted to 5.2% post-IPO.
Five9’s other major shareholders include private equity firm Adams Street Partners which holds a 20% stake, venture capital firm Hummer Winblad Venture Partners which has a 23% share, Partech International and Mosaic Venture Partners. Altogether, Five9 raised almost $72m in equity across four rounds.
The California based company wants to replace call centre companies’ installed software with web-based systems, making it a direct competitor of Cisco Systems and Avaya in that market. According to its prospectus, the company facilitates over three billion interactions each year and has more than 2,000 customers.
J.P. Morgan and Barclays acted as joint lead book-running managers for the offering, while BofA Merrill Lynch also served as a book-running manager. Pacific Crest Securities, Canaccord Genuity and Needham & Company acted as co-managers. They have the option to buy an additional 1.5 million shares, which would increase the size of the offering to $80.5m.
Five9’s shares went public on Nasdaq on Friday under the symbol “FIVN”. Its shares closed slightly up at $7.11 after the first day of trading.