Mortgage technology vendor Ellie Mae registered its common stock with the Securities and Exchange Commission Thursday morning, lowering not only its initial public offering price, but the amount of money it hopes to raise in the capital markets.
Ellie Mae lowered its price to $6 per share—off 40% from the
The mortgage technology firm now estimates the net proceeds of the IPO will be $21.4 million, not the $40 million to $60 million the company said it would yield at a per share price of $9 to $11.
The Pleasanton, Calif.-based software firm is offering 5 million shares and current shareholders intend to sell an additional 2.5 million shares under the stock symbol ELLI on the New York Stock Exchange-owned AMEX exchange.
The IPO has faced a number of setbacks since filing its first registration papers on April 30, 2010, including the change of lead underwriter from Goldman Sachs to Barclays Capital.
Of the original six underwriters, only William Blair and Co. and Piper Jaffray remain involved in the deal, according to Ellie's current (and seventh amended) Form S-1. Morgan Keegan is also currently listed as an underwriter, replacing Keefe, Bruyette & Woods, Macquarie Capital and ThinkEquity.
In 2009 Ellie Mae managed a small profit of $1.7 million on revenues of $38 million. The 13-year-old firm got its start in mortgage banking by offering website technology aimed primarily at loan brokers. It then expanded out its business footprint by becoming a broker LOS with the acquisition of both Genesis and Contour, and eventually expanded further to cater to midtier mortgage lenders. It was founded by industry veteran Sig Anderman.
