For Nutanix, an enterprise data storage company, the IPO delay was worth the wait. After putting its public offering on hold last winter, after market conditions grew stormy, Nutanix raised $238 million yesterday in its Nasdaq debut. The San Jose, California-based company, which had initially priced the 14 million shares it hoped to sell at $13-$15, reset prices at $16 based on investor demand.
That promising public start may convince other technology companies to move forward with IPO plans, especially as Nutanix is not yet profitable. The company is growing fast, with revenue up 84% to hit $445 million for the fiscal year ending July 31, but continues to operate at a loss. Wall Street’s warm reception suggests that other high-growth companies that have yet to turn a profit may benefit from a similar welcome.
During peak trading today Nutanix shares rose to $29.80, valuing the company at over $4 billion.AH