Feb 25 Human resources software company SilkRoad
has selected JPMorgan Chase & Co and Piper Jaffray Cos
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, 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 and
SAP AG, 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, Demandware Inc and
Guidewire Software Inc.
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, has listed in 2013.