Gigamon surges as much as 47% after $128M IPO
- Cromwell Schubarth
- Senior Technology Reporter- Silicon Valley Business Journal
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The Milpitas data traffic management software company led by CEO Paul Hooper sold sold 6.75 million shares at $19 each, raising $128.25 million late on Tuesday. It had targeted the shares to sell for between $18 and $20.
The company sold 4.5 million of the shares and shareholders sold the rest. The stock rose as high as $27.89 in midday trading.
The company's market cap after the IPO and before the opening of trading on Wednesday was around $600 million. It is using the symbol "GIMO."
Highland Capital Partners, its biggest investor, funded a Series A round of about $23 million in 2010.
Underwriters have a 30-day option to purchase up to 1,012,500 additional shares of common stock from Gigamon.
Goldman, Sachs & Co., BofA Merrill Lynch and Credit Suisse were lead joint book-running managers for the offering. Barclays was a joint book-running manager and Raymond James was co-manager for the offering.
Gigamon says that its software is used to analyze and manage data traffic by 60 percent of the Fortune 100.
Its revenue more than doubled between 2010 and 2012, hitting $96.7 million last year when it posted $7.5 million in net income.
Click here to read the press release about Gigamon's IPO.
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Cromwell Schubarth is the Senior Technology Reporter at the Business Journal. His phone number is 408.299.1823.
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