Storage/servers/generic IT

Riverbed Soars on Debut

Riverbed Technology Inc. (Nasdaq: RVBD) staged a stunning debut on Nasdaq Thursday, listing at $9.75 per share and then leaping by $4.56, nearly 47 percent, in its first few hours of trading.

The WAN optimization company's IPO of 8.7 million shares, plus a further 100,000 shares sold by an existing stockholder, raised $85.8 million, with Riverbed pocketing $76 million after the underwriter discount and expenses.

The company will be in line for further proceeds if the underwriters, led by Goldman Sachs & Co. , take up their 30-day option to purchase a further 1.3 million shares.

With about 13.6 percent of its shares now trading publicly, the initial listing price of $9.75 -- which was above the initial stated range of between $7 and $8.50 -- valued the company at $631 million. It's current share price, though, values the company at $927 million. (See Riverbed Sets IPO Terms.)

Riverbed has experienced massive growth this year. Its revenues in the six months to June 30 were $31.8 million, up from $5.2 million in the same period a year earlier, while its customer base has grown from 500 in January this year to more than 1,000 at the end of June.

— Ray Le Maistre, International News Editor, Light Reading

loftenter 12/5/2012 | 2:57:15 PM
re: Riverbed Soars on Debut We are deploying a lot of Riverbed Steelhead appliances for our customers. It is really helping them consolidate their servers and storage while still giving their end users the application performance that is critical to productivity. Also, with Steelhead Mobile we can also help those mobile workers and traveling execs.

Justin Lofton
Systems Engineer
[email protected]
Tredent Data Systems, Inc.
askjeevs 12/5/2012 | 3:40:05 AM
re: Riverbed Soars on Debut Seeing networking company IPO's after long time, this should be a classic case of excellent execution. Raised less than 50 mil, started after the bubble burst and got a good customer traction.
Honestly 12/5/2012 | 3:39:59 AM
re: Riverbed Soars on Debut Remember back to the days when Sycamore was priced at $38 a share and opened at $276. that is soaring, this is just a reasonably priced IPO led by a tier 1 banker with quality clients. Good chance that Riverbed will stay where it is. They need to show at least 32% SEQUENTIAL GROWTH AND SUSTAIN IT, OR YOU WILL SEE IT AT IPO PRICE IN a heart beat.
Plenty of compertition from big guys and the only hot start-up left, Silverpeak
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