Fusion-io Opens At $25 Per Share With A $1.9 Billion Market Cap
Fusion-io’s enterprise flash-based drives help store data in smaller devices and is known for being an incredibly fast data storage solution. And Facebook is a big client of Fusion-io, which has raised $110 million in funding. Another fun fact—Apple co-founder Steve Wozniak is Fusion-io’s chief scientist.
The company is offering a total of 10,755,607 shares in its IPO, raising $233.7 million. Another 1,544,393 shares are being offered by selling stockholders. In addition, the underwriters have an option to purchase up to an additional 1,845,000 shares from Fusion-io on the same terms and conditions.
A 30 percent jump is significant but its still unclear if Fusion-io’s shares will be able to sustain the price increase. LinkedIn shares popped 84 percent on the first trade of its offering to $83 per share, but has dropped below this number of late (today’s LNKD shares opening at $76 per share). Yandex shares opened at $35 per share, but have dropped slightly (shares opened at $33.75 this morning).
The company’s revenue has been strong of late with revenue growing by four times to $125.5 million and gross profit up by four times to $65.7 million in the nine months that ended March 31. But the company’s revenue is based around a small number of clients. According to the Dow Jones, 10 clients account for 91% of the company’s revenue and Facebook alone generated 47% of Fusion-io’s revenue in the past nine months.
Photo Credit: (Photo: Ben Hider/NYSE Euronext)