January 28, 2011 / 3:45 PM / 10 years ago

UPDATE 3-InterXion shares rise 6.2 percent in debut

* Shares close at $13.80, 6.2 pct above IPO price

* Trading on NYSE under symbol “INXN”

* IPO raises $264.9 million at top of proposed range (Updates with market close share price)

By Alina Selyukh

NEW YORK, Jan 28 (Reuters) - Shares of InterXion Holding NV (INXN.N) rose 6.2 percent in their stock market debut on Friday as the Netherlands data center company raises it profile in the U.S. market.

The stock closed at $13.80 on the New York Stock Exchange after climbing as high as $15.40, or 18.5 percent above its IPO price.

Amsterdam-based InterXion so far has no physical presence in the United States.

Called a co-location data center services provider, InterXion offers space, power, cooling and security while storing computing, network, storage and IT infrastructure, among other services.

In Europe it is one of the largest of its kind with 28 data centers across 11 countries.

“It’ll be interesting over the next two or three years to see if InterXion makes a bigger play in the United States,” said Todd Weller, Internet infrastructure analyst at Stifel Nicolaus & Co.

“They will have to prove they can compete,” he said.

In the U.S. market, InterXion is facing competition from companies such as Equinix Inc EQUIX.O, which last spring bought out Switch & Data, which had served as InterXion’s access to the U.S. market through a business partnership.

Late last year, InterXion entered into another transatlantic agreement, partnering with privately held data center host Telx.

“We can read into these partnerships that it’s a really important market for InterXion,” Weller said, adding that the European firm could expand by either building data centers in the United States or acquiring established U.S. peers.

InterXion’s U.S. listing comes four months after people familiar with the matter said InterXion-owner Baker Capital had hired Morgan Stanley (MS.N) to explore a sale of the company.

However, some of the people said at the time that Baker’s high price expectations — equivalent to more than 10 times earnings before interest, tax, depreciation and amortization — could deter bidders.

InterXion’s IPO also opens doors for U.S. investors to the growing European Internet technology scene. Its top-of-range pricing on Thursday helped lift shares of its UK competitor, data center operator Telecity Group Plc TCY.L, which rose as much as 6 percent to a six-week high on Friday. For details, see [ID:nLDE70R14U]

InterXion said it would use the IPO proceeds for general corporate purposes, including construction of new data centers, according to a filing with U.S. regulators. The filing did not specify where the company would build the new data centers.

On Thursday, the data center operator raised about $264.9 million, selling 20.4 million shares for $13 each, an underwriter said.

Underwriters on the offering were led by Bank of America Merrill Lynch, Citigroup and Barclays Capital. (Additional reporting by Quentin Webb in London; Editing by Lisa Von Ahn, Phil Berlowitz and Carol Bishopric)

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