Nutanix Shares Rally in Trading Debut -- Update
September 30 2016 - 2:05PM
Dow Jones News
By Joshua Jamerson
Wall Street gave Nutanix Inc. a warm welcome to the market on
Friday.
Shares of the software company rallied in their first day of
trading, showing upbeat investor attitudes toward the technology
sector in a tepid year for tech initial public offerings.
The shares recently traded at $33.60, more than double their IPO
price, which would value the company at nearly $4.7 billion,
assuming the offering's underwriters exercised in full their option
to purchase additional shares. The shares initially opened at
$26.50 in morning trading, up 66% from their IPO price.
Nutanix late Thursday priced shares in its initial public
offering at $16 a piece. At that price, the offering was set to
raise nearly $274 million for the company, again given the
underwriters exercised their so-called over allotment option in
full.
The debut of trading for Nutanix stock came after the firm
Wednesday boosted the top of the expected per-share price range to
$15 from $13, and, on Thursday -- in addition to pricing the shares
at $16 -- raised the number of shares to be sold.
Nutanix's founders have said they emulated techniques used by
web giants like Alphabet Inc.'s Google division and Facebook Inc.
to operate massive data centers more economically. The Silicon
Valley company merges two classes of data-center hardware --
servers and data-storage systems -- into a single box. Just how far
the trend will go -- and which vendors will reap the most benefit
-- are hotly debated topics.
The offering, which comes amid a slowdown in tech IPOs this
year, is a long-delayed test of investor attitudes about the
technology sector. It also may serve as a referendum on whether its
computing approach will wind up as a market niche or the next big
thing in corporate technology.
Don Clark contributed to this article
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
September 30, 2016 13:50 ET (17:50 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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