Nimble (NMBL) Storage up 62% After Initial Offering

Shares of Nimble Storage Inc. (NMBL) closed up +12.93 or +61.6 percent to $33.93 per share after its initial public offering on Friday. The stock traded as high as $35.13 during its first day of trading on the New York Stock Exchange, after opening at $31.10. Nimble sold a total of eight million shares at $21.00 apiece, raising approximately $168 million, valuing the company at $1.48 billion.

After the stock close of $33.93 per share, the companyâ s capitalization rose to almost $2.2 billion. Nimble originally priced shares at $16 - $18 apiece before increasing the range to $18 - $20, finally arriving at the offering price after adding another dollar.
San Jose, California based Nimble Storage Inc. was founded in 2007 and is primarily an information technology company specializing in hardware and software products for data storage. The company, started by Varun Mehta and Umesh Maheshwari, was initially started with $98 million in venture capital from investors Sequoia Capital, and Accel Partners who own each own 18.4 percent of the company after the IPO. Lightspeed Venture Partners, another original investor now owns 13.9 percent. None of the original investors sold any shares, with all proceeds of the IPO going to the company. The IPO was underwritten by Goldman Sachs and Co. (GS) and Morgan Stanley & Co. LLC (MS), acting as lead joint bookrunners. Co-managing the offering were Oppenheimer & Co. Inc. (OPY), William Blair & Company LLC, Stifel, Nicolaus & Company, Incorporated (SF), Pacific Crest Securities LLC and Needham & Co. LLC (NEEGX). While the company has yet to make a profit, showing a loss of $30 million over the last three quarter on $84 million in revenues, Nimble has gained an additional 1,300 customers over the last year, with total revenues increasing by 700 percent, 280 percent over the last two years with expectations of doubling over the next year. Nimbleâ s main product line consists of a hybrid storage system, which combines flash memory with hard disks. Nimble CEO Suresh Vasudevan in an interview on Friday with the San Jose Mercury News said that, â

Published on Dec 16, 2013
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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