AAA Pure Storage looks to rack up $300m in IPO

Pure Storage looks to rack up $300m in IPO

Pure Storage, a US-based flash storage technology provider backed by electronics manufacturer Samsung, filed for an initial public offering on Wednesday that could raise up to $300m.

Founded in 2009, Pure Storage supplies all-flash memory systems designed to replace traditional mechanical disk-based systems. Its last funding round, a $225m series F round in April 2014, valued it at more than $3bn.

The company’s valuation will likely be larger than that when it floats, but prospective investors may be put off by its financial state. It made a net loss of $183m from revenue of $175m in the year leading up to the end of January 2015.

Pure Storage has raised about $470m in total venture funding since it was founded, including $30m from a Samsung-backed series C round in 2011. Undisclosed investors subsequently bought $60m of shares from existing backers in an August 2014 secondary offering.

The company’s other investors include Greylock Partners, Sutter Hill Ventures, Redpoint Ventures, Wellington Management Company, T. Rowe Price, Tiger Global Management, Index Ventures and In-Q-Tel.

Sutter Hill is Pure Storage’s largest investor, holding a 27.4% stake. The only other investors with shares over 5% are Greylock (17.3%) and Redpoint (5.7%).

The IPO’s underwriters are Morgan Stanley, Goldman Sachs, Barclays, Allen & Company, BofA Merrill Lynch, Pacific Crest Securities, KeyBanc Capital Markets, Raymond James and Evercore.

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