Workday, the cloud-based HR and finance application provider launched by the co-founders of PeopleSoft, priced its shares at $28 ahead of its stock market launch later today.
The company now expects to raise $637 million from the IPO, up from the $400 million it announced its S1 filing in August.
The price puts the company’s market capitalisation at $4.5 billion – around the same size as middleware vendor TIBCO Software or analyst company Gartner.
Founded in 2005, Workday has attracted a number of high profile customers to its HR platform, including Aviva Europe, Google and Hewlett-Packard.
If successful, the IPO is likely to solidify the perception that cloud-based applications are the future of enterprise software.
That is a perception that the likes of Oracle and SAP are no longer fighting. In what appeared to be defensive moves against the rise of Workday, both companies have acquired cloud-based HR providers in the last year, SuccessFactors and Taleo respectively.