Paycom Software IPO Priced Below Expectations

By Matt Jarzemsky 

Paycom Software Inc.'s initial public offering priced well below expectations, according to people familiar with the matter, following a delay in the payroll software's debut was week.

The company and some existing holders sold 6.6 million shares for $15 apiece, the people said, raising $100 million before the potential sale of additional shares by underwriters. Paycom had estimated the shares would fetch $18 to $20 each, according to a filing.

Paycom's was one of a number of IPOs that failed to price as originally scheduled last week, amid a selloff in shares of early-stage technology and biotechnology companies' shares.

The Oklahoma City company plans to use proceeds to repay debt and for general purposes.

Paycom's net profit rose to $7.7 million in 2013 from $4.2 million a year earlier, as revenue jumped 40% to $107.6 million, according to a regulatory filing.

The three months ended Mach 31, it expects to report revenue rose as much as 34% from the year-earlier period, the company disclosed Friday.

Paycom's shares are slated to open on the New York Stock Exchange Tuesday under the symbol "PAYC." Barclays PLC led the offering with J.P. Morgan Chase & Co.

Write to Matt Jarzemsky at [e-mail]

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