BOSTON Cybersecurity firm ZScaler is pushing up its IPO plans by six to nine months after a doubling in FireEye Inc's (FEYE.O) share price on its market debut on Friday underscored the pent-up demand for companies that specialize in battling online crime.
CEO Jay Chaudry, who co-founded the company in 2008 and steered it into a global security provider to more than 4,000 enterprise customers, told Reuters in an interview that FireEye's eye-popping first-day performance clinched his decision.
He said his company, which originally intended to go public in about two years, was already cash-flow positive, meaning it is breaking even or profitable at an operational level.
"The window is open," he said, hours after FireEye began trading. "From a revenue point of view, we are very well positioned to be a public company."
The shares of FireEye, which helps corporations fend off hackers, were up 93 percent in the afternoon. The company sold about 15.2 million shares at $20 each, above its proposed price range and valuing the company at $2.3 billion.
Zscaler, backed by LightSpeed Ventures after a 2012 funding round, is one of a crop of cybersecurity firms preparing to hit stock markets this year. Others include security and data protection company Barracuda Networks and Rapid7.
They join 2012 debutantes Palo Alto Networks Inc (PANW.N) and cloud security firm Qualys Inc (QLYS.O).
(Reporting by Jim Finkle. Editing by Andre Grenon)