Pure Storage, a US-based data storage technology developer that includes electronics manufacturer Samsung among its investors, priced a $425m initial public offering yesterday.
Pure Storage will issue 25 million shares on the New York Stock Exchange later today priced at $17 each – the middle of the IPO’s range. The offering’s underwriters will have the 30-day option to buy an additional 3.75 million shares, which would increase the size of the offering to approximately $489m.
Founded in 2009, Pure Storage produces all-flash data storage systems intended to replace traditional mechanical disk storage systems. It made a $113m loss in the six months leading up to the end of July 2015, from revenues of almost $135m.
Pure Storage had raised about $470m in funding pre-IPO, including $225m from an April 2014 series F round featuring Wellington Management Company, T. Rowe Price, Tiger Global Management, Greylock Partners, Index Ventures, Redpoint Ventures and Sutter Hill Ventures.
Samsung, which owns a stake worth less than 5% of Pure Storage, participated in the company’s $30m series C round in 2011. The company’s other backers include Fidelity Investments, In-Q-Tel and Institutional Venture Partners.
Pure Storage’s largest shareholders are Sutter Hill, which holds a 27% stake, Greylock (17%) and Redpoint (5.6%).
Morgan Stanley and Goldman Sachs are the lead book-running managers for the IPO, while Barclays, Allen & Company, and BofA Merrill Lynch are serving as book-running managers. Pacific Crest Securities, a division of KeyBanc Capital Markets, Stifel, Raymond James and Evercore ISI are the co-managers.