IBJNews

ExactTarget soars in trading debut after initial public offering

Back to TopCommentsE-mailPrintBookmark and Share

ExactTarget Inc., the e-mail marketing company that counts Microsoft Corp. and Groupon Inc. as customers, gained 32 percent in its trading debut Thursday after pricing its initial public offering above the range.

The stock surged 25 percent, to $23.72 a share, about an hour after the opening bell, and reached $24.60 by early afternoon before closing at $25.11.

ExactTarget, based in Indianapolis, raised $161.5 million by selling 8.5 million shares at $19 apiece Wednesday after initially offering them for $15 to $17 each, according to data compiled by Bloomberg.

Company CEO Scott Dorsey, who kicked off trading Thursday morning by ringing the bell at the New York Stock Exchange, said the company’s strong opening is a testament to the company he helped build.

“It feels great,” Dorsey said about going public. “It’s a little bit surreal, to be honest. I’m still floating a couple feet off the ground.”

Many of ExactTarget’s 1,100 employees saw Dorsey ring the bell via a broadcast they watched at Hilbert Circle Theatre in downtown Indianapolis.

Dorsey co-founded ExactTarget in 2000 with Christopher Baggott and didn't initially intend to take the company public. But the access to capital the company will now have to fund growth proved too alluring.

“It’s not only a great moment for our company,” Dorsey said, “but a great moment for the city and the tech community.”

ExactTarget offers software tools that businesses can use for marketing via e-mail, websites and social media, according to its prospectus. The company, led by CEO Scott Dorsey, lost money in three of the past five years, with a net loss of $35.4 million in 2011. Sales increased 55 percent last year to $207.5 million.

ExactTarget is at least the sixth software company to go public in the U.S. this year, according to data compiled by Bloomberg. Demandware Inc., which helps retailers create and manage websites to sell their products, has risen 61 percent since its debut last week.

JPMorgan Chase & Co., Deutsche Bank AG and Stifel Financial Corp. led the offering. Technology Crossover Ventures, which held about 26 percent of ExactTarget before the sale, now holds about 22 percent.

ExactTarget plans to use proceeds from the sale for general purposes, including expanding sales and marketing and overseas operations. The shares are listed on the New York Stock Exchange under the symbol ET.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. If what you stated is true, then this article is entirely inaccurate. "State sells bonds" is same as "State borrows money". Supposedly the company will "pay for them". But since we are paying the company, we are still paying for this road with borrowed money, even though the state has $2 billion in the bank.

  2. Andrew hit the nail on the head. AMTRAK provides terrible service and that is why the state has found a contractor to improve the service. More trips, on-time performance, better times, cleanliness and adequate or better restrooms. WI-FI and food service will also be provided. Transit from outlying areas will also be provided. I wouldn't take it the way it is but with the above services and marketing of the service,ridership will improve and more folks will explore Indy and may even want to move here.

  3. They could take the property using eminent domain and save money by not paying the church or building a soccer field and a new driveway. Ctrwd has monthly meetings open to all customers of the district. The meetings are listed and if the customers really cared that much they would show. Ctrwd works hard in every way they can to make sure the customer is put first. Overflows damage the surrounding environment and cost a lot of money every year. There have been many upgrades done through the years to help not send flow to Carmel. Even with the upgrades ctrwd cannot always keep up. I understand how a storage tank could be an eye sore, but has anyone thought to look at other lift stations or storage tanks. Most lift stations are right in the middle of neighborhoods. Some close to schools and soccer fields, and some right in back yards, or at least next to a back yard. We all have to work together to come up with a proper solution. The proposed solution by ctrwd is the best one offered so far.

  4. Fox has comments from several people that seem to have some inside information. I would refer to their website. Changed my whole opionion of this story.

  5. This place is great! I'm piggy backing and saying the Cobb salad is great. But the ribs are awesome. $6.49 for ribs and 2 sides?! They're delicious. If you work downtown, head over there.

ADVERTISEMENT