Veeva planning initial public offering, according to report

Cloud-based business solutions provider Veeva Systems is planning an initial public offering later this year, suggests a new report.

According to Bloomberg, which cited unnamed sources familiar with the matter, the company has already reached out to multiple banks including Morgan Stanley and is planning for a $2 billion (under £1.3 billion) valuation. No further details are yet known as the talks are still private.

Unlike many of its rivals that specialise in the software-via-Internet business model, Veeva's services are limited to the drug industry. Even though its stake in the $22.3 billion (£15 billion) cloud-computing market is comparatively small, Veeva has built itself a reputation in the life sciences industry with software that allow customers to monitor prescription habits, and are customisable for doctors.

Veeva spends just a quarter of its revenues on product promotions, which is nearly half when compared to what companies like Salesforce.com usually spend. Despite that, Peter Gassner, Veeva's co- founder and chief executive officer, claims, "In our particular market, our customers know us almost as well as they know Microsoft Office".

Veeva has yet to make an official statement on its alleged IPO plans.