Financial Engines Goes Public, Tries to Rise $109 Million
March 15, 2010
Financial Engines, which tries to automate the provision of expert investment advice, hopes to raise $109 million from a public offering of its stock this week
If successful, the Palo Alto, Calif., firm will see its stock start to trade on Nasdaq as early as Tuesday, under the symbol FNGN.
Financial Engines, founded by Nobel Laureate William Sharpe, is a 14-year-old company which uses an online engine to provide advice to individuals investing money in employer-provided retirement plans. Roughly, 7.4 million plan participants can use its engine.
The company hope to raise $109 million by offering 10.9 million shares somewhere between $9 and $11 a share.
That would value the company at approximately $440 million, according to Renaissance Capital.
Financial Engines made $5.7 million in 2008, reversing a loss of $3.6 million in 2008, according to the Associated Press. Sales last year grew 19 percent to $85 million from $71.3 million in 2008.
Goldman Sachs and UBS Investment Bank are the lead underwriters on the deal.
