Oklahoma City-based Paycom Software Inc.’s initial public offering failed to make it out of the starting gate on Friday during a rocky trading day for U.S. stocks.
Paycom CEO Chad Richison had been scheduled to ring the closing bell at the New York Stock Exchange on Friday in celebration of the payroll services company’s first day of trading, but was replaced at the last minute by executives from the Houston company VAALCO Energy Inc.
Paycom’s stock had been set to begin trading between $18 and $20 a share on Friday. The company said in regulatory filings that it planned to raise up to $126 million by offering 6.6 million shares.
Paycom’s stock had been expected to price Thursday night in anticipation of trading beginning Friday morning. The company’s stock is now expected to begin trading sometime early next week.
The company said it was unable to discuss the stock offering on Friday because it was still in a pre-IPO quiet period.
In a regulatory filing Friday, Paycom reported that it expected a net profit of between $300,000 and $1.5 million for the first quarter of the year, down from $5.5 million for the same period a year ago — a 95 percent to 75 percent decrease.
The company said in the filing that the decrease in profits was primarily due to “growth investments,” including sales commissions, new office openings, hiring new staff and reorganization expenses in connection with its planned public offering.
However, Paycom also said in the filing that its annual recurring revenues are growing rapidly by expanding its services to existing customers and the addition of new clients. The company said it anticipates between $12 million and $13 million in new annual recurring revenue in the first quarter of the year, compared to new annual recurring revenue of $9.6 million in the first quarter of 2013 — a 25 percent to 35 percent increase.