BOSTON (Reuters) - 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.
Reporting by Jim Finkle. Editing by Andre Grenon