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BOULDER – Rally Software Development Corp. raised $84 million Friday after pricing its initial public offering at $14 – above its expected range of $11 to $13.
Boulder-based Rally (NYSE: RALY) sold 6 million shares in the offering, according to a company press statement. The cloud-based software-applications company saw share prices jump to $18.38 in midday Friday trading.
A company spokeswoman was not immediately available for comment Friday morning about the change in pricing strategy. Rally previously said it planned to sell 5.75 million shares of common stock between $11 and $13 per share in the initial public offering, according to documents filed April 2 with the Securities and Exchange Commission.
The company has granted underwriters a 30-day option to purchase up to 900,000 additional shares of common stock, according to the press statement. Deutsche Bank Securities Inc. and Piper Jaffray & Co. led the offering.
The company plans to use the money to expand its sales force, data-structure infrastructure and international presence and to potentially buy other firms.
Rally’s chief technology officer, Ryan Martens, founded the company in Boulder in 2001 as F4 Technologies Inc. Since then, the company has raised about $70 million in venture funding from investors such as Boulder Ventures, Mobius Technology Ventures, Mohr Davidow Ventures, Greylock Partners and Vista Ventures.
Rally has been one of the fastest-growing companies in Colorado, with a head count around 380 employees company wide.