Cloud marketing software company HubSpot has increased its IPO price range to $US22 to $US24 on Monday, which would allow it to raise roughly $US120 million in its offering, according to The Wall Street Journal.
HubSpot had initially set its price range between $US19 and $US21 a share. The raised price would give it a market cap of nearly $US700 million.
The price raise will instantly make HubSpot’s CEO Brian Halligan worth a few million dollars more than he would have been at the initial price range. Halligan owns 3.73 million shares, or 4.9%, of the company, according to HubSpot’s S-1.
But at the mid-price of $US23 a share, he would be worth almost $US86 million after the IPO. That $US2 increase in share price just added $US7.5 million to his net worth.
HubSpot is one of the faster growing “software-as-a-service” companies. It posted $US77.6 million in revenue last year, up 50% from the previous year. In the first six months of 2014, it had $US51.3 million in sales, according to its S-1.
While all signs point toward a successful IPO, there have been some concerns over HubSpot’s management and rising costs in recent weeks. It will be interesting to see how the market responds to these issues.
HubSpot is scheduled to begin trading on Thursday on the New York Stock Exchange under the ticker symbol HUBS.