Software intelligence company Dynatrace Inc. priced its initial public offering at $16 apiece, above the expected range, and began trading on the New York Stock Exchange on Aug. 1.
The offering consisted of 34.0 million offered by Dynatrace as well as 1,609,612 shares to be sold by the company's existing stockholders. Dynatrace had estimated in a July 31 registration statement that shares would price in a range of $13 to $15.
The company and selling stockholders granted the underwriters a 30-day option to purchase up to an additional 4,873,174 shares from the company and 468,267 shares from certain of the selling stockholders. The offering, which is subject to customary closing conditions, is expected to close Aug. 5.
The Thoma Bravo LLC-backed company had estimated it would raise up to $510.0 million in net proceeds from the IPO if it priced at $14 per share, the midpoint of its projected range, assuming the underwriters' option to purchase additional shares was exercised in full. The company projected each additional $1 increase from its estimated $14 per share price would add $32.2 million to its net proceeds.
Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Citigroup Global Markets Inc. are acting as lead book-running managers for the offering. Barclays Capital Inc., Jefferies LLC, RBC Capital Markets LLC and UBS Securities LLC are also acting as book-running managers. KeyBanc Capital Markets Inc., William Blair & Co. LLC, Canaccord Genuity LLC, JMP Securities LLC and Macquarie Capital (USA) Inc. are acting as co-managers.
Dynatrace offers a software intelligence platform for the enterprise cloud.