Thursday, October 19, 2017

Data center beast Switch eyes $500m IPO

Company’s market cap could top $16bn in what is lined to be 2017’s third largest IPO only falling short to Snap ($ and Altice USA ($2.2bn).

Giant data centres operator Switch has published the terms for its IPO which show the company is on course to raise $469m by going breaking into the stock markets.

Las Vegas-based Switch said it plans to offer 31.3 million shares within the $14 to $16 price range each.

“We estimate that the net proceeds to us from the sale of shares of Class A common stock in this offering will be approximately $438.5 million, assuming an initial public offering price of $15.00 per share,” the company added.

Founded in 2000, Switch originally filled for the IPO in mid-September. If the IPO goes ahead, the company is set to debut in the New York Stock Exchange under SWCH.

It will also become the seventh data centre REIT to trade in American stock markets together with Equinix, Digital Realty Trust, CoreSite, QTS, CyrusOne, Iron Mountain, and Digital Realty, which has recently absorbed the previous public REIT DuPont Fabros Technology.