Model N, which provides revenue management solutions to the life science and technology industries, gained 28.9% in its first day of trading, making it the sixth best first day pop in 2013. Model N marked the first enterprise software IPO of 2013 and its above-the-range pricing along with strong first day trading is a signal that investors continue to show demand for growth and exposure to enterprise/technology spending. The average return for 2012 enterprise software IPOs is 53%, with only 3 of 15 currently below their offer price. Model N was also the second straight VC-backed tech IPO to pop almost 30% in its first day of trading following Silver Spring’s 29.4% first day gain on March 12.
Model N listed on the NYSE under the ticker “MODN”. JP Morgan and Deutsche Bank acted as lead bookrunnners on the deal.
