* Co valued at about $680 mln at opening price of $23.08
* Co second biggest gainer on NYSE
June 12 Shares of Gigamon Inc, a maker
of data traffic management software, jumped as much as 37
percent in their market debut, underscoring investor confidence
in enterprise software start-ups.
The company, valued at about $680 million at the opening
price, raised about $85.5 million after pricing the offering of
6.75 million shares at $19 each, the midpoint of the expected
Gigamon sold 4.5 million shares in the offering, while
shareholders sold the rest.
Gigamon's stellar debut follows that of software maker
Textura Corp, which rose as much as 68 percent on its
first trading day last Friday. Textura shares are trading about
40 percent above their IPO price of $15.
Shares of enterprise companies have managed to attract
buyers over the past year, while those of consumer internet
companies such as Facebook Inc, Groupon Inc and
Zynga Inc have struggled to stoke investor sentiment.
Shares of enterprise companies, which sell services to
businesses rather than individuals, have risen 37 percent on
average in the two years following their IPOs, compared with 13
percent for consumer companies, according to market data firm
The company that designs and builds data traffic visibility
products in the United States is backed by global venture
capital firm Highland Capital Partners.
The venture capital firm, which sold 495,000 shares in the
offering, will remain the biggest shareholder in the company
with 25.8 percent stake.
Milpitas, California-based Gigamon, which counts 60 Fortune
100 companies among its end-user customers, earned $7.5 million
on revenue of $96.7 million in 2012. The company has generated
positive cash flows in each of the last seven years, according
to its filing with the U.S. Securities & Exchange Commission. ()
Goldman Sachs, BofA Merrill Lynch and Credit Suisse
Securities (USA) LLC were lead underwriters to the offering.
Gigamon shares were up 37 percent at $26.10 in early trading
on Wednesday, making it the second biggest gainer on the New
York Stock Exchange.