Switch Inc's IPO prices at $17 per share

Published October 06, 2017
Reuters

Switch Inc raised about $531.3 million from its initial public offering which was priced at $17 per share, making the data-center operator the second-largest U.S. technology listing this year.

The 31.3 million Class A share offering was priced above the proposed $14 to $16 per share range, giving it a market value of as much as $4.2 billion.

Switch Inc, which was incorporated in June 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.

The company, which also operates data centers in Michigan and Reno, Nevada, posted net income of $35.3 million for the six months ended June 30, flat compared with the year-ago period.

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

(Reporting by Nikhil Subba and Munsif Vengattil in Bengaluru; editing by Diane Craft)