Fusion-io Inc., the maker of flash- memory technology for companies including Facebook Inc., surged on its first day of trading after pricing its shares above the proposed range in an initial public offering.
The stock, listed under the symbol FIO, rose $3.50, or 18 percent, to close at $22.50 in New York Stock Exchange composite trading. The Salt Lake City-based company raised $233.7 million in its IPO, selling 12.3 million shares for $19 each, according to a statement yesterday.
- IPO on June 9, 2011
- Fusion-io was acquired by SanDisk in in June 2014
Fusion-io, founded in 2005, is one of at least four Internet or technology companies scheduled to price U.S. IPOs in the next two weeks, Bloomberg data show. The company, whose biggest client is Facebook, is benefitting from a shift among corporations to flash memory from traditional storage drives. Flash has no moving parts and can access data faster than disks.
“It must be the Facebook effect,” said Darren Fabric, a Chicago-based managing director at IPOX Capital Management LLC, which oversees about $2.5 billion and bought shares in the IPO. “Usually when you have concentrated revenues, it’s kind of high-risk, but if your largest customer is Facebook, people look at it as a positive.”
The company increased its IPO price range June 7 to $16 to $18 after previously asking as much as $15 a share. At today’s closing price, the company’s market value is $1.75 billion.
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