A10 Networks, a US-based developer of applications to improve web app delivery, has raised $187.5m from an initial public offering that saw corporate backer Mitsui divest $28.3m in shares.
The offering consisted of 12.5 million shares priced at $15.00 each. Stock sold by shareholders in the company made up 3.5 million of the allotment, with Mitsui Ventures, the corporate venturing arm of Japan-based conglomerate Mitsui, selling almost 1.9 million shares.
Mitsui Ventures had been an investor since A10’s $6m series A round in 2005. The company had raised $119m in equity funding prior to the offering, with other investors including Triton Ventures, Harbinger Ventures, Enspire Capital, H&Q Asia Pacific and Centrillion Venture Capital.
Summit Partners, the growth equity firm that invested $80m in A10 in October last year, is not selling any shares and will remain the company’s largest external shareholder, retaining a 16% stake.
Underwriters Morgan Stanley, BofA Merrill Lynch, J.P. Morgan RBC Capital Markets, Pacific Crest Securities and Oppenheimer & Co. have the option to acquire a further 1.875 million shares currently owned by current shareholders, including 1 million held by Mitsui, which would raise the size of the IPO to approximately $216.7m and Mitsui’s proceeds to $43.4m.
A10 will retain $121.1m of the proceeds, and will invest up to $30m in elements of its growth strategy including extending its product offerings, expanding its sales operations and increasing the size of its partner ecosystem.