Nutanix
Nutanix, an enterprise cloud company and a tech unicorn, is expected to debut on the public market Friday.
The company on Wednesday priced its offering at $16 a share Thursday, above its range of $13 to $15 a share from a previous $11 to $13. The company said it sold close to 15 million shares to raise about $238 million. Underwriters have the option to buy 2.23 million additional shares of class A stock.
Nutanix had 3,768 end customers as of July 31, 2016, which includes more than 300 Global 2000 companies.
The company NTNX, +111.65% is expected to start trading on the Nasdaq Global Select Market under the symbol “NTNX.”
The lead underwriters on the offerings are Goldman, Sachs & Co., Morgan Stanley and J.P. Morgan.
Here are four things to know before it goes public:
The company narrowly missed a down round
Nutanix received a valuation of more $2 billion in August 2014, at the time of its latest funding round, according to The Wall Street Journal.
The company initially set a range of $11 to $13, which could have put them below the $2 billion valuation, and then raised the range to $13 to $15, which still could have netted the company a down round at the mid point of the range. By pricing above range, the company had an implied market capitalization of about $2.2 billion.
Growing revenue
Nutanix has posted growing revenue of $127 million in 2014, $241 million in 2015 and $445 million in 2016.
But its net losses have also widened from $84 million in 2014, to $126 million in 2015 and $168 million in 2016.
The company said it expects to see net losses for the foreseeable future.
The competitors
Nutanix exists in the category of “hyperconverged infrastructure,” which it says it pioneered when it sold the first version of its operating system in October 2011. Overall, it offers a server that provides networking and storage for businesses.
Still, it has a number of competitors including software company VMware Inc. and large companies such as Hewlett Packard Enterprise Company, Cisco Systems Inc. and Dell Technologies, which offer their own versions of hyperconverged infrastructure and software storage products.
The investors
Nutanix is a venture-backed company, backed by firms such as Lightspeed Venture Partners, which owns 22.7% of the company before the offering, and Khosla Ventures, which owns 10.8%.
Other investors include Blumberg Capital II, which owns 5.7% and Riverwood Capital Partners, which owns 5%.
