Paycor HCM, which provides a SaaS human capital management platform for SMBs, announced terms for its IPO on Monday.
The Cincinnati, OH-based company plans to raise $361 million by offering 18.5 million shares at a price range of $18 to $21. New investors Neuberger Berman, ClearBridge Investments, and Franklin Templeton have indicated an interest in purchasing up to an aggregate of $150 million of the offering (42% of the deal in total). At the midpoint of the proposed range, Paycor HCM would command a fully diluted market value of $3.3 billion.
Paycor states that it is a leading Software-as-a-Service provider of human capital management (HCM) solutions for small and medium-sized businesses. Its suite of solutions enables organizations to streamline HCM and payroll workflows and achieve regulatory compliance while serving as the single, secure system of record for all employee data. Paycor serves over 28,000 customers across the US, primarily targeting companies with 10 to 1,000 employees, with this segment of the SMB market accounting for 81% of its recurring billing for the fiscal year ended June 30, 2020.
Paycor HCM was founded in 1990 and booked $338 million in sales for the 12 months ended March 31, 2021. It plans to list on the Nasdaq under the symbol PYCR. Goldman Sachs, J.P. Morgan, Jefferies, Credit Suisse, Deutsche Bank, Baird, Cowen, JMP Securities, Needham, Raymond James, Stifel and Truist are the joint bookrunners on the deal. It is expected to price during the week of July 19, 2021.
