* Shares rise as much as 52 pct
* Company valued at about $2.25 bln
(Adds industry background and updates share movement)
By Neha Dimri
Dec 13 Shares of data storage company Nimble
Storage Inc jumped as much as 52 percent in their
market debut on Friday as technology companies continue to
receive investor interest in a surging stock market.
Nimble's shares opened at $31.10 and touched a high of
$31.94 on the New York Stock Exchange, valuing the company at
about $2.25 billion.
It has been a bumper year for U.S. IPOs as a surging stock
market and low interest rates have drawn investors to stocks.
According to PricewaterhouseCoopers, 225 companies listed their
shares in the U.S. market up to Dec. 5, raising $51.3 billion.
Nimble makes storage devices that combine hard disks and
flash drives. It competes with larger companies such as NetApp
Inc and EMC Corp.
Demand for flash memory storage products have surged with
the popularity of smartphones and tablets as they are typically
much faster than traditional hard disk drives.
As a result, flash memory storage companies are being widely
seen as acquisition targets. The industry has also received
funding from investment firms.
Nimble's investors include tech-focused investment firms
such as Sequoia Capital, Accel Partners and Lightspeed Venture
Partners. The company, founded in 2008, had raised $40 million
in September 2012.
The stake of Accel Partners, one of Nimble's largest
shareholders, will be diluted to 18.4 percent from 20.8 percent
after the offering.
Nimble, which added about 1,050 customers between 2011 and
2013, sells its products to cloud-based service providers,
education and financial services firms.
The company is headed by Suresh Vasudevan, the former chief
executive of networking equipment company Omneon Video Networks
Inc and an MBA from the Indian Institute of Management.
Nimble's revenue rose to $53.9 million from $1.7 million in
the last three years. Its net loss widened to $27.9 million from
$6.8 million during the same period.
The California-based company raised $168 million after its
initial public offering of 8 million shares was priced at $21
per share, above the expected pricing range of $18-$20.
Nimble, which has expanded its workforce more than ten-fold
in the past three years, plans to use the proceeds for investing
in complementary businesses and for working capital and general
Data storage company Box, which provides users with free
storage, is also gearing up for an IPO. The fast-growing
technology start-up's IPO could come in the first half of 2014
and raise about $500 million, Reuters reported in November,
Goldman Sachs and Morgan Stanley were the lead underwriters
for Nimble's offering.
(Reporting By Neha Dimri in Bangalore; Editing by Ted Kerr,