Business

Human capital firm Paycor pops in Nasdaq debut, valued at $4.8 bln

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The Nasdaq logo is displayed at the Nasdaq Market site in New York September 2, 2015. REUTERS/Brendan McDermid/File Photo

July 21 (Reuters) - Shares of Paycor HCM Inc (PYCR.O) jumped 20% in their Nasdaq debut on Wednesday, giving a valuation of $4.8 billion for the human capital management firm that primarily caters to small and medium-sized businesses.

The stock opened at $28 per share, above the IPO price of $23. On a fully diluted basis, the company is valued at $4.87 billion at the opening price.

Paycor on Tuesday raised $425.5 million through the sale of 18.5 million shares in an initial public offering, where the stock was priced above an earlier targeted range of $18 to $21.

Founded in 1990, Paycor offers solutions for managing human resources, payroll, talent and workforce, targeting businesses with a headcount between 10 and 1,000. It had over 44,000 clients as of March 31 this year.

The majority of small and medium-sized businesses in the United States are underserved by legacy payroll providers, giving Paycor a unique opportunity in a big market, Chief Executive Officer Raul Villar Jr told Reuters.

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Paycor's revenue rose 4% year-on-year to $264.8 million for the nine months ended March 31, a regulatory filing showed. However, it incurred a net loss of $46.2 million in the same period.

UK private equity firm Apax Partners, which acquired Cincinnati, Ohio-based Paycor in 2018, will hold the majority of its outstanding common stock.

Goldman Sachs and J.P. Morgan were the lead underwriters for the offering.

Reporting by Sohini Podder in Bengaluru; Editing by Ramakrishnan M.

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