HubSpot Prices IPO At $25 Per Share

HubSpot announced the pricing of its IPO, offering five million common shares at $25 per share. The price is on target with company estimates in its IPO filing shared in August, and can raise as high as $125 million.

Trading on the New York Stock Exchange under the ticker symbol “HUBS,” the company stated that shares became available on October 8, 2014. HubSpot has also granted a 30-day option for underwriters to purchase an additional 750,000 common shares to cover any over-allotments.

The inbound marketing and sales software provider has grown rapidly since it filed for an IPO. The company announced a new sales platform at its INBOUND 2014 event, which will come with a free CRM system as well as a sales acceleration product designed to give sales reps the data they need to personalize prospect engagement.

“Marketing isn't the only function that can transform the customer experience: far too many sales reps still sell exactly the same way they did a decade ago,” said Brian Halligan, CEO of HubSpot during his keynote address at INBOUND 2014. “The HubSpot sales platform is designed to drive more sales instead of driving people crazy, and to deliver a more relevant, timely, and effective sales process to potential customers while making it significantly easier for sales reps to do their jobs."

HubSpot’s IPO highlights that there is a growing need for automation, according to Act-On CEO Raghu Raghavan. “This IPO, coming on the heels of IPO’s by Eloqua and Marketo, serves to remind us how big and untapped this market really is. In North America alone, there are well over 1,000,000 organizations in need of marketing automation. Hubspot and Marketo between them address less than 2% of this market."