Switch Inc (NYSE:SWCH) has raised about US$531.3mln from its initial public offering, which was priced at US$17 per share, making it the third-biggest US technology listing this year.
The data center group’s share offering was priced above the proposed US$14 to US$16 per share range, giving it initial market value of as much as US$4.2bn.
In early first day trading, Switch shares leapt to over US$22 each, a near 30% premium.
Only the float of Snap Inc. (NYSE:SNAP), valued at US$3.9bn, and Altice USA Inc.’s (NYSE:ATUS) US$2.2bn offering topped Switch’s deal, according to Bloomberg.
To buy out investors in Switch Ltd
Las Vegas-based Switch whose major customers include Amazon.com Inc (NASDQ:AMZN.), eBay Inc (NASDAQ:EBAY) and PayPal Inc (NASDAQ:PYPL), 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 US$35.3mln for the six months ended June 30, flat compared with the year-ago period.
Switch Inc. intends to use the proceeds to buy out investors in Switch Ltd and take control of it as a holding company.
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