Switch Inc, the data center provider, rose as much as 45% on the day of its market debut, which helped the company in capitalizing market of more than $5.6 billion, as reported by Reuters.
IPO of Switch was priced above the top end of range ($17 per share) previously expected ($14-$16 per share), helping it raise $531.3 million in its initial public offering, which made it the second biggest U.S. technology IPO followed by Snap Inc. that had raised $3.4 billion in March this year, as per data by Thomson Reuters.
The company’s shares started trading on the New York Stock Exchange on Friday under the ticker symbol SWCH. Switch is a Las-Vegas based corporation that helps enterprises managing data by leasing its cloud service infrastructures on a contractual basis. A few of the major customers of Switch are eBay, PayPal, and Amazon, among 800+ others.
Switch Inc was incorporated in June for issuing Class A shares, with an intention to use the proceeds to buy out investors in Switch Ltd and take control of it as a holding company.
Switch also operates data centers in Michigan and Reno, Nevada, and it posted net income of $35.3 million for H1 2017, flat compared with the year-ago period.
The top underwriters to the Switch’s offering were Goldman Sachs & Co, J.P. Morgan, and BMO Capital Markets.