June 6 Shares of Arista Networks Inc
rose nearly 35 percent in their debut, valuing the network
switch maker at $3.72 billion.
Arista's IPO raised about $226 million after its offering of
5.25 million shares was priced at $43 per share, well above its
expected range of $36-$40.
The company, which competes with Cisco Systems Inc,
makes network switches to handle traffic at large Internet data
Arista's customers include Microsoft Corp, VMWare
Inc, Facebook Inc, Yahoo Inc, Comcast
Corp and Citigroup Inc.
The company was started in 2004 by Andy Bechtolsheim,
co-founder of Sun Microsystems, and David Cheriton, a Stanford
University computer science professor.
Cheriton and Bechtolsheim, who were among the initial
investors in Google Inc, also founded Gigabit Ethernet
startup Granite Systems, which Cisco acquired in 1996.
Arista introduced its first products, used in high frequency
trading, in 2008. The company has also benefited from the spurt
in cloud computing, big data and software defined networking.
The company's net income rose about 87 percent, to $12.3
million, for the quarter ended March 31.
Revenue rose about 91 percent, to $117.2 million.
Arista said it would use the proceeds from the offering for
general corporate purposes and to fund its working capital
Morgan Stanley and Citigroup were the lead underwriters to
Arista shares opened at $55.25 on the New York Stock
Exchange on Friday and touched a high of $58.18.
(Reporting by Avik Das in Bangalore; Editing by Joyjeet Das and