Shares of Paycor HCM Inc (PYCR.O) jumped 20% in their Nasdaq debut on Wednesday, giving a valuation of $4.8 billion for the human capital management firm that primarily caters to small and medium-sized businesses.
The stock opened at $28 per share, above the IPO price of $23. On a fully diluted basis, the company is valued at $4.87 billion at the opening price.
Paycor on Tuesday raised $425.5 million through the sale of 18.5 million shares in an initial public offering, where the stock was priced above an earlier targeted range of $18 to $21.
Founded in 1990, Paycor offers solutions for managing human resources, payroll, talent and workforce, targeting businesses with a headcount between 10 and 1,000. It had over 44,000 clients as of March 31 this year.
The majority of small and medium-sized businesses in the United States are underserved by legacy payroll providers, giving Paycor a unique opportunity in a big market, Chief Executive Officer Raul Villar Jr told Reuters.
Paycor’s revenue rose 4% year-on-year to $264.8 million for the nine months ended March 31, a regulatory filing showed. However, it incurred a net loss of $46.2 million in the same period.
UK private equity firm Apax Partners, which acquired Cincinnati, Ohio-based Paycor in 2018, will hold the majority of its outstanding common stock.