HubSpot, the US-based developer of a sales and marketing platform, has raised the target for its initial public offering from $100m to $120m, setting the range between $19.00 and $21.00 a share.
The company will issue an initial 5 million shares, with a further 750,000 available to underwriters Morgan Stanley, J.P. Morgan Securities, UBS Securities, Pacific Crest Securities, Canaccord Genuity and Raymond James & Associates to cover over-allotments, which would raise a further $15.75m.
HubSpot plans to use $18m of the proceeds to repay interest owed under a revolving line of credit, but stated its central aim is to create a market for its stock.
The company has raised more than $100m in equity funding since it was founded in 2006 from investors including internet company Google, cloud computing technology provider Salesforce, General Catalyst Partners, Matrix Partners, Scale Venture Partners and Sequoia Capital.