Envestnet shares close higher after IPO prices low

Envestnet Inc., a Chicago company that provides Web-based services for financial advisers, expects to raise more than $31 million in net proceeds this week in an initial public offering.
OCT 26, 2010
Shares of Envestnet are rising even after the company, which provides Web-based services for financial advisers, priced shares of its initial public offering at the bottom of a reduced range. The Chicago company raised $63 million as Envestnet and its investors offered 7 million shares for $9 apiece. Envestnet cut its price range to $9 to $10 per share from $12 to $14 per share Wednesday. Envestnet Inc.'s services are used by about 8,400 financial advisers for about 175,000 investor accounts. Last year, with revenues of $77.9 million, it lost $872,000. Trading Thursday morning on the New York Stock Exchange under the symbol Ticker:(ENV) shares are up $1.17, or 13 percent, at $10.17. Half of Envestnet's shares -- or 3.85 million -- are being offered as common stock, with selling stockholders selling an equal amount. The company said in the filing that it will not receive any of the proceeds from the sales of common stock by selling stockholders. Meanwhile, the company is offering underwriters an option to buy up to 1.16 million additional shares of common stock to cover overallotments. The company estimates net proceeds at about $31.3 million, based on an offering price of $9.50, at the midpoint of the expected price range of $9 to $10. The total could reach as high as $36.4 million assuming the underwriters exercise the overallotment option in full. Envestnet said it intends to use the proceeds for general corporate purposes, including for selective strategic investments through acquisitions, alliances or other transactions. Envestnet's services are used by about 8,400 financial advisers for about 175,000 investor accounts, it said in its SEC filing. Last year, with revenues of $77.9 million, it lost $872,000. Its largest client is FMR Corp., the parent of Fidelity Investments, which accounted for 31 percent of revenue last year. Envestnet Inc. was founded in 1999 and has more than 400 employees.

Latest News

Why fixed income still belongs in your clients' portfolios
Why fixed income still belongs in your clients' portfolios

In an era of AI euphoria and market FOMO, getting back to basics with fixed income may be the most contrarian and most important move advisors can make.

Voya expands advisor managed accounts to add private market assets
Voya expands advisor managed accounts to add private market assets

Voya Financial adds private equity, credit and real estate options to its AMA program, building on support for looser federal investment rules in retirement accounts.

With executives leaving, Osaic’s Reid now in the spotlight
With executives leaving, Osaic’s Reid now in the spotlight

Shannon Reid, president of Osaic and the network’s number two executive, has plenty of challenges, industry executives said.

Investors sue crypto fund and platform, alleging $1.5 million never returned
Investors sue crypto fund and platform, alleging $1.5 million never returned

Auditors flagged the commingling. The COO allegedly knew. Investors kept getting the pitch

Wells Fargo nabs $1.7B RBC advisor team, loses two teams to LPL
Wells Fargo nabs $1.7B RBC advisor team, loses two teams to LPL

The advisors on the move include two brothers leading a family practice in Connecticut, and a husband-and-wife tandem working with business owners in the West Coast.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.