Rally Beats Expectations With $84M IPO, Shares to Trade This Morning

Rally Software Development beat expectations for its IPO, scheduled this morning. The company raised $84 million.

Rally, a Boulder, CO-based company that develops cloud-based project management tools for software developers, set the price of its common stock at $14 per share and sold 6 million shares. Last week, Rally said it would offer 5.75 million shares priced between $11 and $13 per share.

Rally will trade on the NYSE as “RALY”.

Founded as F4 Technologies in 2001 by Ryan Martens, the company’s current chief technology officer, Rally has been one of the fastest-growing companies in Boulder and has a headcount around 380 employees companywide.

Rally has been showing strong revenue growth, according to financial data included in its IPO filing. From fiscal 2012 to fiscal 2013, Rally’s total revenue grew to $56.8 million, up 38 percent from $41.3 million. Revenue was $29.7 million during the company’s 2011 fiscal year.

Rally reported a $10.8 million net loss in 2013, down from the $11.6 million net loss the year before.

Investors in Rally include Boulder Ventures, Mobius Venture Capital, Greylock Partners, and Meritech Capital Partners.

Deutsche Bank Securities and Piper Jaffray & Co. acted as lead book-running managers for the offering. Needham & Company, JMP Securities, and William Blair & Company were co-managers.

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