August 10, 2009 / 7:58 PM / 10 years ago

UPDATE 2-Fortinet seeks up to $100 million in IPO

(Adds details of deal, data on tech stocks, and NEW YORK dateline)

NEW YORK, Aug 10 (Reuters) - Network security provider Fortinet Inc applied on Monday to raise up to $100 million in an initial public offering as the markets have proven more receptive to new technology stocks.

Silicon Valley-based Fortinet plans to use the IPO’s proceeds to develop products and potentially make acquisitions, according to a prospectus filed with the U.S Securities and Exchange Commission.

Fortinet’s filing did not provide details on the potential timing of the IPO or the terms of the offering, but it comes at a time when new technology stocks have been well received by investors and performed well.

Half of the 16 U.S. IPOs in 2009 have been by software or technology companies, including several that have posted the best performances by new stocks this year, according to Thomson Reuters data, stoking investor interest in the sector.

Language training software maker Rosetta Stone Inc (RST.N) is up 67 percent since its IPO in April and remote access provider LogMeIn Inc (LOGM.O), which is up 20 percent since its debut in June.

Fortinet had sales of $115.5 million in the first half of 2009, up 17.6 percent over a year earlier, with a profit of $8.35 million. But because of a string of earlier losses, Fortinet had an accumulated deficit of $111.8 million as of last June, according to the filing.

The IPOs lead underwriters are Morgan Stanley (MS.N) J.P. Morgan Securities & Co (JPM.N) and Deutsche Bank Securities (DBKGn.DE).

Fortinet’s filing did not specify which stock exchange it would seek to list on, nor under which symbol. (Reporting by Phil Wahba and by Sayantani Ghosh in Bangalore; editing by Aradhana Aravindan; editing by Andre Grenon)

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