NEW YORK, March 16 (Reuters) – Learning software maker Cornerstone OnDemand Inc priced shares above the proposed range and raised $136.5 million in its initial public offering on Wednesday, an underwriter said.
The developer of web-based learning and talent management software sold 10.5 million shares for $13 each. It had planned to sell the shares for $9 to $11 each.
Cornerstone’s clients include Barclays Bank PLC (BARC.L), Liberty Mutual Insurance Co [LBRTLI.UL], Starwood Hotels (HOT.N) and the state of Nebraska.
The Santa Monica, California-based company has yet to become profitable, although its gross revenue grew 59 percent to $46.6 million in 2010 and 49 percent in 2009.
In 2010, Cornerstone recorded a loss of $48.4 million after a loss of $8.4 million in 2009, as it expanded its sales and marketing spending.
Selling in the IPO were Bessemer Venture Partners, Meritech Capital and Bay Partners, which together were expected to own 37.9 percent of the company after the IPO, compared to 48.9 percent before it.
Chief Executive Adam Miller also planned to sell stock in the IPO, cutting his stake to 14.7 percent from 18 percent. Altogether, stockholders were expected to sell 3 million of the 10.5 million shares sold in the offering.
Shares of Cornerstone are expected to begin trading on the Nasdaq on Thursday under the symbol “CSOD” (CSOD.O).
Underwriters on the offering were led by Goldman Sachs & Co and Barclays Capital. (Reporting by Alina Selyukh; Editing by Steve Orlofsky and Tim Dobbyn)