Business software company Freshworks confirmed that it had priced its United States initial public offering (IPO) quite above the target range to raise around $1.03 billion, which values the Salesforce.com rival at $10.13 billion as hybrid work pushes massive demand for its products.
Freshworks set the price for the 28.5 million shares at $36 per share in the September 21 IPO. The company was backed by Sequoia Capital and Accel. Previously, it had expected to raise around $969 million at the top end of its price range of $32 to $34 per share that was revised higher.
The San Mateo, California-based now joins several other big names from the enterprise software business that have benefitted from the red-hot US capital markets in the last 18 months.
A majority of the software IPOs during this period have been well-received by many investors who see room for rapid growth in the industry after the pandemic. There is a lot of adoption of hybrid work models by firms throughout the world which is driving demand for enterprise software products.
Launched in Chennai, India in 2010, Freshworks supports businesses with customer management, providing products like a messaging platform, call-center solutions that promise to deliver shorter wait times, and an artificial intelligence-powered chatbot for effective customer support.
Freshworks shares started trading on the Nasdaq on September 22 under the symbol “FRSH”. J.P. Morgan, Morgan Stanley, BofA Securities are the main underwriters for that offering.