(Bloomberg) -- C3.ai Inc., the software maker founded by former Oracle Corp. executive Tom Siebel, has priced its initial public offering above the marketed range to to raise $651 million, according to a people familiar with the matter.
The Redwood City, California-based company sold 15.5 million shares Tuesday for $42 apiece after marketing them for $36 to $38, said the people, who asked not to be identified because the information wasn't public yet. Based on the outstanding shares listed in its filings, the company will have a market value of about $4 billion at $42 a share.
A representative for C3.ai didn't immediately respond to a request for comment.
C3.ai has said that big name backers including one of its partners, Microsoft Corp., would acquire shares in a private placement as part of the listing.
Spring Creek Capital, an affiliate of Koch Industries, planned to buy $100 million in common stock while Microsoft would buy $50 million of them at the IPO price, according to an earlier filing.
Earlier this year, C3.ai formed a partnership with Microsoft and Adobe Inc. for a new customer-relationship management software seeking to combat Salesforce.com Inc.
C3.ai's offering is being led by Morgan Stanley, JPMorgan Chase & Co. and Bank of America Corp. The company's shares are expected to begin trading Wednesday on the the New York Stock Exchange under the symbol AI.
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