July 21 (Reuters) – Shares of Paycor HCM Inc (PYCR.O) jumped 20% on their Nasdaq debut on Wednesday, putting a valuation of $ 4.8 billion at the human capital management firm that s primarily aimed at 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 opening price.
Paycor raised $ 425.5 million on Tuesday through the sale of 18.5 million shares in an initial public offering, where the share price was above an earlier target range from $ 18 to $ 21.
Founded in 1990, Paycor offers human resources, payroll, talent and workforce management solutions, targeting businesses with between 10 and 1,000 people. It had more than 44,000 customers as of March 31 of this year.
The majority of small and medium-sized businesses in the United States are underserved by legacy payroll service providers, giving Paycor a unique opportunity in a large market, chief executive Raul Villar Jr. told Reuters.
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Paycor’s revenue increased 4% year-over-year to $ 264.8 million for the nine months ended March 31, according to a regulatory filing. However, she suffered a net loss of $ 46.2 million during 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 JP Morgan were the main underwriters of the offer.
Report by Sohini Podder in Bengaluru; Edited by Ramakrishnan M.
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