Daily Management Review

Switch Inc. raises $ 531 mln in the third-largest IPO in 2017


Switch Inc. attracted $ 531 million during the initial public offering. The deal has become the third largest IPO in the technology sector in 2017 in the US, writes Bloomberg.

Switch, which provides cloud and telecommunications services, sold 31.25 million shares at a price of $ 17 per share, which is above the proposed range of $ 14-16 per share, the company said in a statement.

According to Bloomberg, the offering was less only than that of Snap Inc., during which the company managed to raise $ 3.9 billion, and the placement of Altice USA Inc. shares. at $ 2.2 billion.

The next largest share listing was WideOpenWest Inc. for $ 356.5 million.

Switch, whose headquarters is located in Las Vegas, designs, builds and manages data centers. At the same time, the data centers operate on renewable energy sources.

In 2015, Switch announced creation of a set of data centers in Reno (Nevada). One of these data centers, according to the company's plan, should become the largest in the world.

Among the largest customers of Switch Inc are companies Amazon.com Inc, eBay and PayPal Inc. Switch helps companies manage data by leasing their cloud infrastructure on a contractual basis.

The company has been profitable for at least the last four years. As a result of 2016, the company recorded a net profit of $ 31.4 million with revenue of $ 318.4 million. A year earlier, Switch received a net profit of $ 73.5 million with revenue of $ 265.9 million.

The company recorded a net profit of $ 35.3 million in the first six months of 2017, Reuters reports.

The shares of Switch will be traded on the New York Stock Exchange under the ticker SWCH.

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

source: reuters.com, bloomberg.com

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