By Echo Wang
NEW YORK (Reuters) - Business software firm Freshworks said it had priced its U.S. initial public offering well above the target range to raise $1.03 billion, valuing the Salesforce.com (NYSE:CRM) rival at $10.13 billion as hybrid work fuels demand for its products.
Freshworks priced 28.5 million shares at $36 per share, the company backed by Accel and Sequoia Capital said on Tuesday. It had earlier expected to raise $969 million at the top end of its increased price range of $32 to $34 per share.
San Mateo, California-based Freshworks joins a number of big names from the enterprise software business that have taken advantage of red-hot U.S. capital markets over the past 18 months.
Most software IPOs during that period have been well-received by investors who see room for growth in the sector even after the pandemic, as the adoption of hybrid work models by companies across the world drive up demand for enterprise software products.
Founded in Chennai, India, in 2010, Freshworks helps businesses with customer management, offering products including a messaging platform, an artificial intelligence-powered chatbot for customer support and call-center solutions that promise shorter wait times.
Freshworks shares are scheduled to start trading on the Nasdaq on Wednesday under the symbol "FRSH".
Morgan Stanley (NYSE:MS), J.P. Morgan, BofA Securities are the lead underwriters for the offering.