Rally Releases More Details on Impending IPO

Rally Software Development’s expected initial public offering could be worth nearly $86 million, according to documents filed today with the SEC.

The Boulder, CO-based company said in the filing that it plans to offer 5.75 million shares at a price of between $11 and $13. Underwriters will have the option of buying up to 862,500 additional shares, the documents said.

Rally will trade on the NYSE as “RALY” when it debuts, which, according to IPO analysts Renaissance Capital, is expected to happen within the week.

Based on the range and number of shares offered, Rally is expecting an IPO of at least $63 million. At the midpoint of the proposed range, Rally Software would have a fully diluted market value of $284 million, according to IPO analysts Renaissance Capital.

Rally makes cloud-based project management and development tools for software engineers who use the agile programming methodology.

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 the 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.


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