Internet-based supply chain management software vendor, Retek Inc, a subsidiary of customer relationship management software company, HNC Software Inc, filed plans with the Securities and Exchange Commission (SEC) Friday for an initial public offering that it expects to stage before year-end and hopes will raise more than $93m. The number of Retek shares up for grabs publicly will be determined at the time of offering but is expected to add up to a 15% stake in the company. HNC intends to distribute all of its Retek common shares to its shareholders in a tax-free spin- off subject to Internal Revenue Service approval. As well as funding product investment, the IPO proceeds will be partially used to repaying debts to San Diego, California-based HNC.
Minneapolis, Minnesota-based Retek turned a profit of $3.88m on revenue of $55.03m last year. Retek’s software enables retailers to interact with manufacturers, suppliers, distributors, wholesalers, and transportation firms over the internet. The firm’s filing with the SEC touts its flagship Retail.com product as the first e-commerce network solution tailored for the retail industry. The filing also cites projections from industry watcher, Forrester Research tipping the market for software solutions for business to business e-commerce to grow from $171m last year to $3.1bn in 2001.
