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Aruba's IPO Fillip

Dan Jones
LR Mobile News Analysis
Dan Jones, Mobile Editor

Third-ranked enterprise wireless LAN hardware maker Aruba Networks Inc. (Nasdaq: ARUN) appears to have bucked the dour trend of some recent tech IPOs with its first public offering this week. The company brought in $88 million with the float and saw shares jump 29 percent in the first day of trading yesterday.

The 8 million shares in the offering sold for $11 each, over the forecasted range of $8 to $10 a share. Unlike the much more fancied Clearwire LLC (Nasdaq: CLWR) IPO this month, however, Aruba seems to be staying strong after the initial burst out of the gate. (See Clearwire's Bubble Bursts and Aruba Plots $80M IPO.)

Aruba's first day of trading opened at $14 a share and closed at $14.15 each. In trading late this morning the stock maintained that uplift; hitting $15.50 even after the wider market grew jittery on Fed inflation comments.

There had been some concern about the prospects for mobile and wireless-related IPOs this month after Clearwire's stumble. Investors, however, appear to have realized that Aruba works in the much more established enterprise WiFi sector, which is less of a long bet than Clearwire's WiMax ambitions. (See Whither Wireless IPOs?.)

Aruba's rivals in the market include Cisco Systems Inc. (Nasdaq: CSCO), which dominates both business and consumer WiFi, and Motorola Inc. (NYSE: MOT)'s Symbol unit. The money raised in the float should help, Sunnyvale, Calif.-based Aruba compete. It says it will use the new cash for R&D and expanding its sales team.

— Dan Jones, Site Editor, Unstrung

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12/5/2012 | 3:11:09 PM
re: Aruba's IPO Fillip
If history is any indication, Trapeze will
file for IPO approximately 8 months after Aruba - that's how long it normally takes them to start doing and saying whatever Aruba has done. :)
12/5/2012 | 3:11:09 PM
re: Aruba's IPO Fillip
Are they likely to follow suit considering the relative success of Aruba's IPO?
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