RealPage, which provides a set of applications for property management firms, has raised almost $180 million from its initial public offering today.
The Texas company offered 6 million shares while stockholders sold 6.3 million, starting at $11 each and rising by almost $4 on the Nasdaq exchange. That brought the price to $14.52 by the close. At one point the price rose to more than $16.
The company, founded in 2003, says its web-based software helps landlords deal with renters more efficiently. RealPage claims that it can dramatically speed up the time it takes to close rental deals by automating a number of processes, such as running background checks, getting tenants renter’s insurance and running automated email services for managers, among other things. It also offers services tailored specifically to managers of military housing, student housing, senior housing, and low-income housing.
The company previously raised over $40 million in venture funding from Apax Partners, Advance Capital Partners, Camden Partners, and Leeds Equity Partners, according to peHub.
Realpage’s strong IPO is part of a trend towards increased demand for web-based solutions to specific industry verticals. It’s happening because thousands of companies worldwide are switching from older installed software systems that require IT personnel on site, to web-based systems. It also shows a maturing of the Web-based software market. Early entrants like Salesforce and NetSuite focused on general business tasks like sales-force management and operations. The success of RealPage’s IPO could encourage further investment in industry-specific solutions.