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.