Bloomberg News

ServiceNow Said to Start Pitching IPO to Investors This Week

June 18, 2012

ServiceNow Inc., the maker of cloud- based software that helps companies manage information- technology systems, will begin meeting with investors this week to promote its initial public offering, a person with knowledge of the situation said.

The San Diego-based company plans to complete the offering by the end of the month, said the person, who declined to be named because the information is private. ServiceNow announced (NOW:US) plans in March for an IPO to raise about $150 million. While the company hasn’t yet indicated the number of shares or price range, the so-called roadshow typically lasts about two weeks and follows a regulatory filing setting the terms.

Escalating concern about a worsening of Europe’s sovereign- debt crisis and a global economic slowdown have damped IPO activity around the world in recent months, making this year’s second quarter the slowest for initial sales since 2009. ServiceNow’s offering may come after a month-long drought in U.S. IPOs, after Facebook Inc. (FB:US) raised $16 billion in a May 17 IPO and dropped as much as 32 percent in the weeks following its debut.

Morgan Stanley, Citigroup Inc. and Deutsche Bank AG were hired to lead ServiceNow’s IPO, according to a filing with the U.S. Securities and Exchange Commission. The shares will list on the New York Stock Exchange under the symbol NOW.

JMI Equity, the Baltimore-based firm that invests in growth-stage Internet and software companies, owns 54 percent of ServiceNow, according to the filing. Venture firms Sequoia Capital and Greylock Partners also own stakes, the document shows. Chief Executive Officer Frank Slootman, previously a partner at Greylock, joined ServiceNow in May 2011.

Rhett Glauser, a spokesman at ServiceNow, didn’t immediately respond to a message seeking comment. The Wall Street Journal previously reported ServiceNow’s roadshow plans.

Exa’s IPO

Exa Corp. (EXA:US), the maker of software that helps automakers do aerodynamics testing, plans to raise as much as $81.3 million in a June 27 IPO, Bloomberg data show. The Burlington, Massachusetts-based company is offering 6.25 million shares for $11 to $13 each, according to a filing today.

Stifel Financial Corp. is leading the offering and the stock will be listed on the Nasdaq Stock Market under the symbol EXA.

Companies worldwide have raised $35 billion in IPOs since the beginning of April, on pace to achieve the smallest second- quarter total since 2009, when initial sales raised only $10.5 billion following the 2008 bankruptcy of Lehman Brothers Holdings Inc., Bloomberg data show.

To contact the reporter on this story: Lee Spears in New York at lspears3@bloomberg.net

To contact the editor responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net


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Companies Mentioned

  • NOW
    (ServiceNow Inc)
    • $59.62 USD
    • 2.72
    • 4.56%
  • FB
    (Facebook Inc)
    • $74.57 USD
    • 0.00
    • 0.0%
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