Rally Beats Expectations With $84M IPO, Shares to Trade This Morning

Rally Software Development beat expectations for its IPO, scheduled this morning. The company raised $84 million.

Rally, a Boulder, CO-based company that develops cloud-based project management tools for software developers, set the price of its common stock at $14 per share and sold 6 million shares. Last week, Rally said it would offer 5.75 million shares priced between $11 and $13 per share.

Rally will trade on the NYSE as “RALY”.

Founded as F4 Technologies in 2001 by Ryan Martens, the company’s current chief technology officer, Rally has been one of the fastest-growing companies in Boulder and has a headcount around 380 employees companywide.

Rally has been showing strong revenue growth, according to financial data included in its IPO filing. From fiscal 2012 to fiscal 2013, Rally’s total revenue grew to $56.8 million, up 38 percent from $41.3 million. Revenue was $29.7 million during the company’s 2011 fiscal year.

Rally reported a $10.8 million net loss in 2013, down from the $11.6 million net loss the year before.

Investors in Rally include Boulder Ventures, Mobius Venture Capital, Greylock Partners, and Meritech Capital Partners.

Deutsche Bank Securities and Piper Jaffray & Co. acted as lead book-running managers for the offering. Needham & Company, JMP Securities, and William Blair & Company were co-managers.

Author: Michael Davidson

Michael Davidson is an award-winning journalist whose career as a business reporter has taken him from the garages of aspiring inventors to assembly centers for billion-dollar satellites. Most recently, Michael covered startups, venture capital, IT, cleantech, aerospace, and telecoms for Xconomy and, before that, for the Boulder County Business Report. Before switching to business journalism, Michael covered politics and the Colorado Legislature for the Colorado Springs Gazette and the government, police and crime beats for the Broomfield Enterprise, a paper in suburban Denver. He also worked for the Boulder Daily Camera, and his stories have appeared in the Denver Post and Rocky Mountain News. Career highlights include an award from the Colorado Press Association, doing barrel rolls in a vintage fighter jet and learning far more about public records than is healthy. Michael started his career as a copy editor for the Colorado Springs Gazette's sports desk. Michael has a bachelor’s degree in English from the University of Michigan.