UPDATE 1-Fortinet sets terms of $120 mln IPO

* Fortinet to sell 12 mln shares, range of $9-$11

* Fortinet IPO could come by mid-November

* Aldagen, biotech co, files for $80.5 mln IPO

NEW YORK, Oct 28 (Reuters) - Network security provider
Fortinet Inc (FTNT.O) set the price range and size of its
initial public offering, suggesting its stock flotation will
take place within a few weeks.

Fortinet expects to sell 12 million shares for between $9
and $11 apiece and list them on the Nasdaq under the ticker
symbol "FTNT."

Of those shares, 52 percent are being sold by the Silicon
Valley firm's backers, leaving Fortinet with expected net
proceeds of $52.4 million, according to a filing on Wednesday.

Based on a midpoint of $10, the IPO is expected to raise
$120 million.

While the prospectus did not specify an expected date for
the pricing, IPOs are typically launched within two to three
weeks of terms being set, suggesting the offering could price
by mid-November.

The company's executives and directors own 59 percent of
the company, while venture-capital firms Redpoint Ventures and
Meritech Capital collectively own about 26 percent, according
to the prospectus.

Fortinet had sales of $181.4 million in the first nine
months of 2009, up 18.8 percent over a year earlier, with a
profit of $16.3 million. But because of a string of earlier
losses, Fortinet had an accumulated deficit of $103.9 million
as of last September, according to the filing.

The IPOs will be managed by Morgan Stanley, J.P. Morgan and
Deutsche Bank Securities. The underwriters will have the option
to buy another 1.8 million shares.

Separately, biotech company Aldagen Inc (ALDH.O), which
develops regenerative cell therapies using adult stem cells,
filed plans on Wednesday to raise as much as $80.5 million in
an IPO. It plans to use the proceeds to complete clinical
trials.

Its largest investors include venture capital firms
Intersouth Partners and Harbart Venture Partners.

Aldagen faces what is still a difficult environment for
biotech IPOs. In the two most recent IPOs by biotech firms,
Omeros Corp (OMER.O) is down 43 percent since its debut in
early October, while Cumberland Pharmaceuticals Inc (CPIX.O)
has slipped 30 percent since its IPO in August.

Cowen and Co and Wells Fargo Securities will manage the
IPO.
(Reporting by Phil Wahba, editing by Matthew Lewis)