Co-founded by Nobel laureate William F. Sharpe in 1996, investment adviser Financial Engines is expected to complete its highly anticipated IPO this week. If successful, the company stands to be the first small cap growth IPO to test investors' appetite since early February, when online lead generation firm QuinStreet (QNST) raised $150 million.
Backed by well-regarded venture firms including Foundation Capital, New Enterprise Associates and Oak Hill, Financial Engines was originated to cater to the retirement needs of less affluent individual investors and hopes to benefit from positive trends in the retirement industry, such as the notable shift toward defined contributions plans, automatic enrollment into 401(k) plans and a changing regulatory backdrop that reduces the fiduciary risk associated with offering investment advice.
Financial Engines expects to raise $109 million by offering 10.9 million shares, with 5 million coming from insiders, at a range of $9-$11. Goldman Sachs and UBS Investment Bank are the lead underwriters on the deal, which is slated to price tonight and open for trading on the NASDAQ on Tuesday. At the midpoint of the range, the company will command a market cap of $441 million.
Read our full IPO commentary.
