Eloqua Inc. (ELOQ), whose software helps
companies including American Express Co. target new clients, is
seeking a valuation about half that of peers in its initial
public offering as it vies for investors in a crowded field.
The cloud-based software maker plans to raise as much as
$92 million in a sale today. The midpoint of the $9.50 to $11.50
price range values Eloqua at about 4 times sales in the year
through June, compared with an average multiple of 8.1 for 14
competitors, according to data compiled by Bloomberg.
Eloqua is going public after ExactTarget Inc. (ET), Bazaarvoice
Inc. (BV) and ServiceNow Inc. completed IPOs in the past six months.
Its late-comer status may have prompted the company to offer a
discount to lure investors with myriad opportunities in the
software-as-a-service industry, according to Brian Barish,
president of Denver-based Cambiar Investors LLC.
“There are plenty of options that are already established,
and that’s the obvious disadvantage to new entrants,” Barish,
who helps oversee about $7 billion, said in an interview. “To
entice people, you do need a bit of a discount.”
Eloqua’s subscription software helps companies target their
marketing to reach the right audience, measure the effectiveness
of marketing campaigns and prioritize sales leads based on
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