Published Sept. 24, 2013
Benefitfocus Inc. has closed its initial public offering after selling 3 million common shares in just under a week, earning the Daniel Island-based tech firm net proceeds of approximately $70.6 million.
In total, more than 4.9 million shares of common stock were sold, including 1.9 million shares sold by stockholders. The underwriters also exercised their option to purchase an additional 740,250 shares of common stock from shareholders.
The aggregate sale grossed $131 million. Shares were priced at $26.50, which was $2 more than the high end of the company’s anticipated range.
Benefitfocus, which provides a cloud-based platform for employee benefits management, began trading its common stock on the Nasdaq on Wednesday under the symbol “BNFT.”
The company plans to use the proceeds for working capital and general corporate purposes, including executing its growth strategy and developing new products and services.
“The principal purposes of this offering are to increase our financial flexibility, increase our visibility in the marketplace and create a public market for our common stock,” according to the company’s filing with the Securities and Exchange Commission.
As the company saw continued growth in the past few years, it began to consider a public offering as a means to fund the company’s growth and product development, according to CEO Shawn Jenkins.
Benefitfocus, founded in 2000, employs roughly 800 people. In 2006, 2.5 million consumers used its platforms. As of last year, 20 million consumers signed up, including Continental Tire, Dannon and UnderArmour. Benefitfocus has offices in Greenville, San Francisco and Tulsa, Okla., as well as Charleston.