Cornerstone OnDemand Raises $137 Million Pricing IPO Above Range

Cornerstone OnDemand Inc., the provider of management-training software for businesses, raised $137 million in an initial public offering, 18 percent more than expected as it priced above the top of the range.

The Santa Monica, California-based company sold 10.5 million shares at $13 each after offering them for $9 to $11 apiece, according to a filing with the U.S. Securities and Exchange Commission and data compiled by Bloomberg. Proceeds will be used to repay debt, the filing showed.

Cornerstone OnDemand priced its IPO after companies including Lagardere SCA (MMB) and Japanese drugmaker RaQualia Pharma Inc. delayed share sales, citing market conditions after Japan’s worst earthquake on record caused a global stock selloff. The slump may threaten the IPO recovery that started to take hold in 2010 after the worst two years for new stock sales since 2003.

The company planned to sell 7.5 million of the shares in the offering, with existing shareholders including Bessemer Venture Partners of Larchmont, New York, and Meritech Capital Partners LP and Bay Partners LLC, both in Palo Alto, California, selling 3 million shares, the filing showed.

The company, which has provided services to Fortune 100 companies since 2001, has had net losses every year from 2006 through 2010 totaling $75.3 million, even as annual revenue increased more than sixfold during the same period, according to the prospectus.

Goldman Sachs Group Inc. (GS) in New York and London-based Barclays Plc led the offering. The shares will start trading on the Nasdaq Stock Market under the ticker CSOD.

To contact the reporter on this story: Lee Spears in New York at lspears3@bloomberg.net.

To contact the editor responsible for this story: Jennifer Sondag at jsondag@bloomberg.net.

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