Share values of Model N increased by 44% at its trading debut with a market valuation reaching US$500 million. This comes as no surprise as the hold of the business software maker on pharmaceutical and related companies makes investment in it an attractive option.
The initial public offering of Model N was at US$15.50 per share, with a volume of 6.7 million shares at a total value of US$103.9 million. The company provides revenue management software to life science and technology companies to assist in pricing, dealing, rebating and contractual matters. Amongst its clients are Johnson and Johnson, Boston Scientific Corp, Dell and VMware. The projected market value for this industry would reach nearly US$300 million globally by the end of 2013 according to market research company Gartner.
According to CEO Zack Rinat, "The timing of this (IPO) was to make a statement about the market for revenue management and about the maturity of the company."
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