Trickle-down IPO

4 May 2009 By Jeff Segal

Software firm SolarWinds wants to be the first venturebacked tech company to debut since last August. Its success would show that investors have regained some risk appetite, a boon for backedup venture firms and underwriters. But it s unlikely the floodgates will fly open.

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US enterprise software firm SolarWinds plans to go public by selling 12.1m shares at between $9.50 to $11.50 per share. The company originally filed with regulators to go public in March 2008.

Solarwinds intends to use the IPO proceeds to repay a portion of its $94m in longterm debt, finance payments to its original shareholders and boost working capital.

The company is backed by Bain Capital and Insight Ventures, which own a combined 67% of its shares, and Austin Ventures, which owns 3.4%. The offering is being underwritten by Goldman Sachs, JPMorgan, Morgan Stanley, Jefferies, Thomas Weisel and Ladenburg Thalmann.

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