(Reuters) - Workday Inc, which provides cloud-based human resource software, said it plans to price its initial public offering of Class A shares at between $21 and $24 each, valuing the Silicon Valley company at up to $3.85 billion.
Workday was co-founded by ex-PeopleSoft executives David Duffield and Aneel Bhusri, who left PeopleSoft following its acquisition by Oracle Corp in 2004. It confidentially filed for an IPO in July under the Jumpstart Our Business Startups (JOBS) Act.
The Act allows a company to keep financial details contained in IPO documents private for longer and permits it to keep its registration statement confidential until 21 days prior to the first road show. The company subsequently filed in August to raise up to $400 million in its IPO.
Workday is looking to sell 22.75 million Class A shares in the offering. At the mid-point of Workday's expected range, the offering will raise about $512 million.
A dual-class share structure -- which allows owners to retain control even after selling a large stake -- has been used by a number of tech startups and was recently seen in the IPO of English soccer team Manchester United.
Workday's Class A and Class B shares are identical, except for voting and conversion rights. Each Class A share is entitled to one vote while each Class B share is entitled to ten votes and is convertible into a Class A share at any time.
Duffield and Bhusri, together with their affiliates, will hold about 67 percent of the voting rights after the offering, the company said in a filing.
The company, which is also backed by private equity firm Greylock Partners, listed Morgan Stanley and Goldman Sachs as the lead underwriters for the offering.
Workday's Class A shares, which have been approved for listing on the New York Stock Exchange under the symbol "WDAY", are scheduled to be priced on October 11, an underwriter said.
(Reporting by Aman Shah in Bangalore; Editing by Sreejiraj Eluvangal)