US-based sales and marketing software developer HubSpot raised $125m in an upsized initial public offering on the New York Stock Exchange yesterday.
HubSpot issued 5 million shares priced at $25.00 each, well above the $19-$21 range set last week. It will use $18m to repay an outstanding line of credit, but the rest of the proceeds are yet to be allocated.
The company had raised over $100m in funding prior to the IPO from backers including Google Ventures, internet company Google’s corporate venturing subsidiary, and cloud computing company Salesforce.com, though neither are among HubSpot’s principal shareholders.
HubSpot’s largest shareholder is General Catalyst Partners, which holds a 22.6% stake, diluted from 27.1% pre-IPO. Other notable shareholders are Matrix Partners (14.3%), Scale Venture Partners (5.7%), Sequoia Capital (8.6%) and Charles River Ventures (4.2%).
Book-running managers Morgan Stanley, JP Morgan Securities and UBS Securities, and co-managers Pacific Crest Securities, Canaccord Genuity and Raymond James & Associates have a 30-day option to acquire an additional 750,000 shares, which would lift the total raised in the IPO to approximately $143.8m.
HubSpot’s shares opened at $32.95 yesterday on their first day of trading, and closed at $30.10.