Workday competitor SilkRoad selects banks for IPO: sources

A flag hangs on the wall of the JP Morgan company stall on the floor of the New York Stock Exchange in New York July 15, 2010.

(Reuters) - Human resources software company SilkRoad has selected JPMorgan Chase & Co (JPM.N) and Piper Jaffray Cos (PJC.N) to lead an initial public offering later this year, according to two sources with knowledge of the matter.

The Chicago-based company is hoping to piggy-back on the IPO of peer Workday Inc (WDAY.N), which raised $637 million in October. Shares of Workday, which priced its offering at $28 per share, have nearly doubled since then to close Friday at $55.25.

JPMorgan declined to comment. SilkRoad and Piper Jaffray could not be reached for comment.

SilkRoad, which also competes with Oracle Corp (ORCL.O) and SAP AG (SAPG.DE), hopes to be the latest in a slew of IPOs from cloud-based companies, which let customers access their data and computing power from remote servers.

Last year, IPOs from cloud-based companies besides Workday included ServiceNow Inc (NOW.N), Demandware Inc (DWRE.N) and Guidewire Software Inc (GWRE.N).

The market for business software is expected to reach $300 billion globally by the end of 2013, according to market research firm Gartner.

Founded by serial entrepreneur Flip Filipowski in 2003, the company's investors include Azure Capital Partners, Tenaya Capital and Foundation Capital.

The company, which is expected to hit a run rate of roughly $70 million this year according to the sources, helps companies manage employees and other resources.

The U.S. market for technology IPOs so far this year has lagged. Only one company, online money transfer provider Xoom Corp (XOOM.O), has listed in 2013.

(Reporting By Olivia Oran in New York; Editing by Gerald E. McCormick)