Data center operator Switch Inc’s IPO is the second largest U.S. tech company to hit the U.S market this year

While Switch had projected its listing price to be in the range of $14 to $16, it’s share price broke all expectations and was listed at $17, much to the cheer of investors.

In a significant development, Switch Inc has raised $531.3 million from its initial public offering wherein it had priced its share at $17, which made it the second-largest U.S. technology to hit the U.S. stock market this year.

After launch, the data center operator’s 31.3 million Class A shares were priced above the proposed $14 to $16 per share range, which gives it a market valuation of $4.2 billion.

Switch Inc, which was incorporated in June this year for the purpose of issuing the Class A shares in this offering, intends to use the proceeds to buy out investors in Switch Ltd and take control of it as a holding company.

Las Vegas-based Switch Inc, whose major customers include Amazon.com Inc, eBay and PayPal Inc, helps enterprises manage data by renting out its cloud service infrastructures on a contractual basis.

Incidentally, Switch which also operates its own data centers in Reno, Nevada, and Michigan posted a net income of $35.3 million for the six months ended June 30.

J.P.Morgan, Goldman Sachs & Co, Wells Fargo Securities and BMO Capital Markets, were among the top underwriters to Switch Inc’s offering.

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