NEW YORK (TheStreet) -- Workday, the maker of cloud-based software for human resources, has set the terms of its initial pricing offering, valuing the company at almost $4 billion.
In a filing with the Securities and Exchange Commission, Workday is pricing its IPO at $21 to $24 a share, and is looking to sell 26.1 million Class A shares in the process.
The company will sell 22.75 million shares, with the remaining shares sold by outside investors.
Workday, which lists its primary competition as Oracle (ORCL) and SAP (SAP) in the filing, is a "leading provider of enterprise cloud-based applications for human capital management (HCM), payroll, financial management, time tracking, procurement and employee expense management."In the six months ended July 31, 2012, Workday generated $119.52 million in revenue, up from $54.82 million in the same period in 2011. Despite the sharp revenue increase, the loss in the period widened from $1.27 a share to $1.40 a share. Workday said its in filing that does not expect to be profitable for the foreseeable future. "We expect our operating expenses to increase in the future due to anticipated increases in sales and marketing expenses, research and development expenses, operations costs and general and administrative costs, and therefore we expect our losses to continue for the foreseeable future," the filing noted. Morgan Stanley and Goldman Sachs are the lead book-runners on the deal. The company intends to list its stock on the New York Stock Exchange under the ticker symbol "WDAY." Interested in more on Oracle? See TheStreet Ratings' report card for this stock. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_Bull
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV