Model N Soars Over 30 percent on IPO

Michael Teague  |

Model N Soars over 30 percent on IPOModel N (MODN), a Northern California software outfit that provides revenue management services for healthcare and technology companies, is having a stellar IPO day.  Starting off with a price of $15.50, the stock has soared 34.65 percent, currently trading at $20.87. The company raised about $104 million, and currently has a market cap of around $445 million.

Zack Rinat, the company’s CEO and founder, sees a role for management software that extends beyond the traditional cost-cutting and process-automation needs for things like human capital management in human resource departments, sales and marketing for customer relationship management, and finance for enterprise resource planning.  “Keep in mind that customers lose tens of billions each year by leaving money on the table because they do not effectively manage pricing, rebates/incentives and contracting,” he said in an interview on Wednesday morning.

The other part of the business consists of replacing the existing systems, a market in which he sees a $5 billion opportunity.

Prior to founding Model N, Rinat was the vice president and GM on NetDynamics, the business arm of SunMicrosystems, and of which he was also the founder.  He broke enters the current market, having perhaps forged a new chunk of it himself, by going straight to the big companies like Johnson & Johnson (JNJ), Amgen (AMGN), and Merck (MRK) in such a way that Model N has actually become their “strategic partners”.

Founded in 1999, the company will be competing against industry giants like Oracle (ORCL) and SAP (SAP) for market share.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
ORCL Oracle Corporation 51.02 0.59 1.17 15,062,013 Trade
MODN Model N Inc. 16.20 -0.05 -0.31 181,590 Trade
JNJ Johnson & Johnson 142.73 0.75 0.53 6,109,217 Trade
MPX Marine Products Corporation 21.66 0.21 0.96 16,651 Trade
AMGN Amgen Inc. 205.06 -0.04 -0.02 1,695,775 Trade
MRK Merck & Company Inc. (new) 71.01 0.23 0.32 7,178,283 Trade
SAP SAP SE ADS 122.10 1.97 1.64 502,369 Trade

Comments

Emerging Growth

Margaux Resources Ltd.

Margaux Resources Ltd is a Calgary based resource company. The Company is focused on its Jersey Emeral Tungsten-Zinc property located in the southeast portion of British Columbia.