NEW YORK (Reuters) -Business software firm Freshworks, which counts Accel and Sequoia Capital among its major backers, on Tuesday priced its U.S. initial public offering (IPO) well above the target range to raise $1.03 billion, a source familiar with the matter said.
Freshworks priced 28.5 million shares at $36 per share, the source said, requesting anonymity as the talks are confidential. The IPO valued Freshworks at $10.13 billion.
The company had earlier expected to raise $969 million at the top end of its new price range of $32 to $34 per share, up from $28 to $32 per share previously.
Freshworks did not immediately respond to a request for comment.
San Mateo, California-based Freshworks joins a number of big names from the enterprise software business that have taken advantage of red-hot U.S. capital markets over the past 18 months.
Most software IPOs during that period have been well-received by investors who see room for growth in the sector even after the pandemic, as the adoption of hybrid work models by companies across the world drive up demand for enterprise software products.
Founded in Chennai, India, in 2010, Freshworks helps businesses with customer management, with products including a messaging platform, an artificial intelligence-powered chatbot for customer support and call-center solutions that offer shorter wait times.
Freshworks shares are scheduled to start trading on the Nasdaq on Wednesday under the symbol “FRSH”.
Morgan Stanley, J.P. Morgan, BofA Securities are the lead underwriters for the offering.
(Reporting by Echo Wang in New York and Vishal Vivek in Bengaluru; Editing by Devika Syamnath)