Imprivata, a US-based provider of authentication technology for use in healthcare, closed an $87.25m initial public offering yesterday that, although oversubscribed, was well below its initial target of $115m.
The company, backed by investors including software provider SAP, initially issued 5 million shares priced at $15 each last week.
Underwriters J.P. Morgan, Piper Jaffray, William Blair, Wells Fargo Securities, and Stephens then took up the option to buy a further 750,000 shares, lifting the the overall proceeds for the offering.
SAP led Impriavata’s $15m series C round in 2008, but it is not one of the company’s main shareholders. Venture capital firms Polaris Partners, Highland Capital Partners and General Catalyst Partners each had their stakes reduced from 25.3% to 19.6% in the offering.
Imprivata’s stock opened at $16.25 last week and currently stands at $16.38.