Tuesday, October 17, 2017

Switch enters NYSE today following $531m IPO and $4.2bn valuation

Data centre company servicing Amazon and eBay has become the year’s second largest technology initial public offering.

The US stock markets are this Friday adding Switch to their boards as the company makes its debut in the New York Stock Exchange after raising $531.3m for its IPO.

With 31.3 million Class A shares priced at $17 per security, a value above the previously proposed $14 to $16, the company’s valuation has hit $4.2bn, representing 2017’s second largest tech IPO after Snap.

The company will trade in the NYSE under SWCH, and will, at the same time, 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.

Some of the underwriters of Switch’s IPO included Goldman Sachs, JP Morgan, BMO Capital Markets and Wells Fargo.

Switch, known for its hyperscale sites, was founded in 2000 and is headquartered in Las Vegas, Nevada.

The company operates today in Las Vegas and the Grand Rapids and it has also announced a third large scale to be built in Atlanta.

In addition, the provider also has a presence in Italy and Thailand through joint ventures which resulted in the Switch Supernap model.