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Tech IPOs Back In Limelight

Tech IPOs Back In Limelight
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Initial public offering of technology companies is once again gaining momentum, with Proofpoint Inc., Infoblox Inc. and Splunk Inc. disclosing their expected pricing ranges Monday in regulatory filings, just a month ahead of the anticipated blockbuster IPO of social networking giant Facebook Inc.

While two of these stocks are expected to be listed on the Nasdaq, one plans listing on the NYSE. All the three firms will not receive any proceeds from the sale of shares by the selling stockholders.

Proofpoint, a security-as-a-service vendor, expects to price its shares between $10.00 and $12.00 per share. Considering a mid-point of $11.00 per share, the net proceeds from the sale of shares are expected to be around $49 million.

The company enables large and mid-sized organizations to defend, protect, archive and govern their sensitive data. It is offering 5 million shares of common stock and the selling shareholders are offering 1.2 million shares.

Its bigger competitors include Cisco after the acquisition of IronPort and Google through its acquisition of Postini.

McAfee, an Intel subsidiary, and Microsoft through its acquisition of Frontbridge as well as Symantec, which acquired Brightmail and MessageLabs, are considered competitors in the industry.

The company expects to use the net proceeds from this offering for working capital and other general corporate purposes. Some of the proceeds may be used to fund the expansion of its domestic and international data center infrastructure or to pay down a portion of outstanding balances under equipment loans.

Proofpoint has applied to list the shares on the NASDAQ Global Market under the symbol "PFPT."

The company reported a slightly narrower loss for 2011 at $20.14 million. Revenues improved to $81.84 million from $64.79 million with a substantial increase in subscription revenues.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets, LLC, Pacific Crest Securities LLC and First Analysis Securities Corp. are the underwriters.

Infoblox, which provides automated network control, expects to offer its common stock between $12.00 and $14.00 per share. The company will raise about $65.2 million on an assumed initial public offering price of $13.00 per share, which is the mid-point of the estimated range.

Infoblox is offering 5.74 million shares in the initial public offering and selling stockholders are offering 1.76 million shares. The net proceeds will be used for working capital and other general corporate purposes.

Morgan Stanley & Co. LLC, Goldman, Sachs & Co., UBS Securities LLC, Pacific Crest Securities LLC, JMP Securities LLC and Stephens Inc. are the underwriters for the offering. Infoblox reported a net loss of $5.32 million in 2011, compared to a profit of $6.99 million last year. Revenues improved to $132.84 million from $102.17 million. The stock has been approved for listing on the NYSE under the symbol "BLOX."

Splunk, which collects and indexes data, is offering 12.51 million shares of common stock and the selling stockholders are offering 992,722 shares. The company expects pricing of its shares between $8.00 and $10.00 per share. At the mid-point of $9.00 per share, the company estimates to raise $100.7 million.

Splunk plans to use proceeds from the offering for general corporate purposes, including working capital, sales and marketing activities, product development, general and administrative matters and capital expenditures.

For the fiscal year ended January 31, Splunk's revenue surged to $120.96 million from $66.25 million, but net loss widened to $10.99 million from $3.81 million.

Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Inc., UBS Securities LLC, Pacific Crest Securities LLC and Cowen and Company, LLC are the underwriters for the offering. Splunk has applied to list its stock on the NASDAQ Global Select Market under the symbol "SPLK."

It was reported recently that Facebook has chosen the Nasdaq for listing instead of the New York Stock Exchange. While Nasdaq traditionally has a reputation for its list of technology stocks, it in recent times saw a dip in technology listings. Recent IPOs such as LinkedIn (LNKN) and Pandora Media (P) were listed on the NYSE.

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by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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