AAA Nutanix processes flotation

Nutanix processes flotation

Nutanix, a US-based enterprise cloud company backed by venture capital firm Sapphire Ventures, is set to float on Nasdaq today after completing a $237.9m initial public offering yesterday, valuing it at $2bn.

The company sold 14.87 million shares in its IPO priced at $16, slightly above the anticipated 14 million shares and an expected range of $13 of $15. Nutanix had filed for a $200m initial public offering in December 2015 but delayed the flotation citing market conditions.

Incorporated in 2009, Nutanix has created a cloud platform aimed at business users that combines server, virtualisation and storage silos into a unified interface. The company raised approximately $403m in combined equity funding and debt financing.

Sapphire Ventures, spun out of enterprise software developer SAP, and Riverwood Capital partners co-led a $101m series D round in January 2014, with participation from Morgan Stanley Expansion Capital, Greenspring Associates, Lightspeed Venture Partners, Khosla Ventures and Battery Ventures.

Nutanix’s largest shareholder is Lightspeed, which held 22.7% that has dropped to 20.4%. Khosla’s stake has been diluted from 10.8% to 9.7%, Mohit Aron’s share has gone from 8.7% to 7.8%, and Blumberg Capital’s stake has been reduced from 5.7% to 5.1%.

Financial services conglomerate Fidelity held 6.1% ahead of the offering, which is dropping to 5.4%. Finally, Riverwood’s 5% stake has been diluted to 4.5%.

Nutanix’s remaining backers include investment bank Goldman Sachs, which most recently provided $75m in debt financing in June 2016.

The company has granted underwriters a 30-day option to purchase up to an additional 2.1 million shares.

The underwriters are Goldman Sachs, Morgan Stanley and JP Morgan Securities as well as RBC Capital Markets, Robert W Baird, Needham & Company, Oppenheimer, Pacific Crest Securities, Piper Jaffray, Raymond James & Associates, William Blair & Company, and Stifel, Nicolaus and Company.

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