Irvine-based HireRight Inc., which does employee background checks and drug screening for employers, expects to raise up to $50 million in its initial public offering, the company said Tuesday in a filing with regulators.
The company and investors plan to sell 4.4 million shares in the offering, a date for which hasn’t been set.
HireRight’s expected amount of money raised is down from a projection of $86 million at the time it first announced plans to go public in February.
The company plans to sell about 3 million shares itself. Investors including human resource outsourcing provider Hewitt Associates LLC are selling the remaining shares.
The shares could price at $15 to $17 each.
HireRight plans to use the money general purposes, including expanding its sales and marketing, developing services and possible acquisitions.
Late last year, HireRight moved its headquarters to Irvine’s University Research Park, where it has a 63,000-square-foot office at 5151 California Ave.
The company employs about 200 workers locally and 370 people in all, and counts about $40 million in yearly sales.
For the three months ended March 31, HireRight reported earnings of $153,000, after paying preferred dividends, on sales of $16 million.
