Workday, a company offering online tools for enterprises to manage human resources, payroll, and finances, has set the terms for its IPO. The company is pricing its shares between $21 and $24 each, according to an SEC filing this morning. The company could raise as much as $628 million in the offering. At the high-end of the range, Workday is valued at nearly $4 billion ($3.8 billion).
The company was founded in 2005 (and first incorporated under the name “North Tahoe Power Tools”) by Dave Duffield and Aneel Bhusri, both former executives at PeopleSoft. Workday has raised $175 million in funding from Greylock Partners, Dave Duffield, T. Rowe Price, Morgan Stanley, Janus Capital, Bezos Expeditions, New Enterprise Associates and others.
In Workday’s fiscal year (ending January 31, 2012), the company brought in $134.4 million in revenue (an increase of 98 percent year-over-year), with a net loss of $79.6 million. Duffield and Bhusri still control a majority of the voting stock.
It will be interesting to see how Workday’s stock will be received by investors. Real estate listings site Trulia also filed for its IPO privately in July, and investors didn’t have as much lead time on Trulia’s financials before the company went public. But Trulia’s IPO opened at $22.10, up 30 percent from the company’s pricing, and closed on Friday at $21.42 per share.