San Jose, CA-based Nutanix Inc NTNX is set to start trading on Sep 30, 2016 at the NASDAQ stock exchange. The enterprise cloud platform provider recently raised its price range for initial public offering (IPO) to $13-$15 per share from an earlier range of $11-$13.
At the current price range, Nutanix is expected to raise almost $241.5 million by selling 14 million shares. Underwriters that include the likes of Goldman Sachs, Morgan Stanley and J.P. Morgan have the option to buy 2.1 million additional shares of class A stock.
Nutanix’s enterprise cloud platform “converges traditional silos of server, virtualization and storage into one integrated solution and can also connect to public cloud services.” The company’s offerings include two software products Acropolis and Prism, which are delivered on x86 servers.
Lightspeed Centure Partners and Khosla Ventures with 22.7% and 10.8% ownerships are the major venture capitalists. Nutanix has raised more than $300 million in equity funding since its foundation in 2009. In May, this year the company borrowed $75 million from Goldman Sachs.
Nutanix is well positioned to benefit from the strong growth prospect of hyperconverged integrated systems (HCIS). Per market research firm Gartner, HCIS will grow 79% to reach almost $2 billion in 2016. By 2019, HCIS will be the fastest-growing segment of the overall market for integrated systems, reaching almost $5 billion.
Notably, Nutanix was named a Leader in the 2015 Gartner Magic Quadrant for Integrated Systems.
Per MarketWatch, Nutanix had 3,768 end customers as of Jul 31, 2016, which includes the likes of Activision Blizzard (ATVI - Analyst Report) , Best Buy (BBY - Analyst Report) , Jabil Circuit (JBL - Analyst Report) and Kellog (K - Analyst Report) among others. In fiscal year 2016, revenues soared 84% year over year to $445 million, slightly slower than almost 90% surge it posted in fiscal 2015.
However, net losses widened from $84 million in 2014, to $126 million in 2015 and $168 million in 2016. The company anticipates reporting net loss for the foreseeable future.
Recently, Nutanix acquired virtualization software provider PernixData for about $38 million and India-based software development platform provider Calm.io for about $7.2 million. The acquisitions will bolster its platform in terms of improved storage performance, storage capacity planning, multi-cloud workload migration and automated application deployment.
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