Yet another enterprise cloud software company, Workday, is all set to go public today. It has raised $637 million, by selling close to 22.8 million shares for $28 each. It will have a public float of around 14% after the IPO. It will be listed on the NYSE with the ticker “WDAY”, and currently has a valuation of $4.5 billion.
Workday’s primary offering is a cloud-based financial management and human resource management solution, which is used by more than 340 enterprise clients.
It generated close to $120 million in revenue in the first six months of 2012, but is yet to turn a profit.
While most consumer internet IPOs in the last couple of years have floundered, enterprise software companies have seen a warm reception at the public markets. Companies like Palo Alto Networks and Splunk have performed much better than the likes of Facebook, Zynga or Groupon.
Workday competes primarily with the likes of Oracle, SAP and Salesforce.com. As the cloud wars heat up, Workday might even end up being a hot acquisitiont target for one of the biggies.