Nutanix Shares Rally in Trading Debut
September 30 2016 - 11:10AM
Dow Jones News
Shares of software company Nutanix Inc. rallied in their trading
debut Friday, showing warm investor attitudes toward the technology
sector in a tepid year for tech IPOs.
The shares opened at $26.50 in morning trading, up 66% from
their IPO price, valuing the company at nearly $3.7 billion.
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.
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 11:55 ET (15:55 GMT)
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